China’s shadow banking assets are estimated to have grown by 21% to CNY64.5 trillion in 2016, slowing from the 30% rise in 2015, as liquidity is tightened in the country’s financial system, Moody’s Investor Service said in a report.“The Chinese authorities recognize the risks in the shadow banking sector and are seeking to address them through new regulatory guidelines,” said George Xu, Moody’s Associate Analyst. “Preventing financial risks has become one of the government’s top priorities this year.” He added that China’s shadow banking sector has more than doubled since 2012 and grew 21% to CNY64.5 trillion last year, a high level that triggered further government tightening. Shadow banking activities saw a surprising return in the first quarter, with a large increase in entrusted loans, trust loans and undisclosed banker’s acceptances.