Shadow banks controlled

Most of China's shadow banking activities are currently under regulation, posing little risk to the country's banking system, China's central bank governor said at a press conference Sunday.

"Shadow banking does exist in China, but China's shadow banking system is much smaller by volume than those of developed countries," said Zhou Xiaochuan, governor of the People's Bank of China, without giving specific figures.

The shadow banking system is a vast network of underground and unlicensed finance companies, trust firms and small lenders.