On Friday, China's central bank took a new step in curbing debt by announcing new regulations that tighten rules on the 102 trillion Chinese yuan ($15.3 trillion) asset management business — which contributes greatly to the shadow banking industry.
That was just the latest stage of a crackdown from Beijing that has begun to show some signs of success.
Broad shadow banking levels "barely grew" to 64.7 trillion Chinese yuan ($9.72 trillion) at the end of the first half of 2017 from 64.4 trillion yuan ($9.68 trillion) at the end of 2016, a Moody's report released in November showed.
However, the growth in certain activities classified as "core" shadow banking accelerated to 18.2 percent from a year ago at the end of the third quarter of 2017, the reported added.
Undiscounted bankers' acceptance, a short-term debt product in the "core" category, for instance, returned to positive territory for the first time in three years, said Moody's.
The various "core" components are captured by Total Social Financing (TSF) data, an official gauge that provides a measure of credit and liquidity supplied by the entire financial system in China.
Non-"core" components, meanwhile, are not part of the TSF and are based on the issuance of higher-risk instruments such as wealth management products and asset management plans. These are the targets of the recent crackdown.