Imperial College London

Professor Franklin Allen

Business School

Assoc Dean of Faculty & Res/ Dir of Brevan Howard Centre



+44 (0)20 7594 9195f.allen Website CV




2.05B52-53 Prince's GateSouth Kensington Campus






BibTex format

author = {Allen, HF and Qian, Y and Tu, G and Yu, F},
doi = {10.1016/j.jfineco.2019.01.006},
journal = {Journal of Financial Economics},
pages = {18--41},
title = {Entrusted loans: a close look at china's shadow banking system},
url = {},
volume = {133},
year = {2019}

RIS format (EndNote, RefMan)

AB - We perform transaction-level analyses of entrusted loans, one of the largest components of shadow banking in China. Entrusted loans involve firms with privileged access to cheap capital channeling funds to less privileged firms, and the increase when credit is tight. Nonaffiliated loans have much higher interest rates than both affiliated loans and official bank loans, and they largely flow into real estate. The pricing of entrusted loans, especially of nonaffiliated loans, incorporates fundamental and informational risks. Stock market reactions suggest that both affiliated and nonaffiliated loans are fairly compensated investments.
AU - Allen,HF
AU - Qian,Y
AU - Tu,G
AU - Yu,F
DO - 10.1016/j.jfineco.2019.01.006
EP - 41
PY - 2019///
SN - 0304-405X
SP - 18
TI - Entrusted loans: a close look at china's shadow banking system
T2 - Journal of Financial Economics
UR -
UR -
VL - 133
ER -