Risk Transfer Measures of Shadow Banks: A Case Study of Lufax

Lufaxs digital platform lowers barriers to entry for financial services, especially for SMEs and individuals who may be underserved by traditional banks. This contributes to broader financial inclusion, stimulating economic activity by enabling more businesses and individuals to participate in the market. This paper explores the phenomenon of shadow banking in China. Our specific focus is on Lufax, one of the leading companies in the finance sector. Lufax leverages Internet technology to provide financial services to small and medium enterprises (SMEs) and individuals. We offer a detailed case study of Lufaxs business model to provide insights into the complexities of shadow banking in a rapidly evolving financial landscape. Furthermore, we analyze Lufaxs operational risks, methods of risk transfer, its relationships with SMEs, connections with the investors, and the role played by the Ping An Group. The Lufax case illustrates the unique risk management of Chinas shadow banking, where technology and ties with Ping An Group have established a comprehensive risk management system to support sustainable growth.