Shadow banking, or credit intermediation outside the formal banking system, has continued to evolve since the 2007–09 Global Financial Crisis. The shadow banking sector in China has been growing by more than 20% per year from 2007 to 2017. Due to data limitations, not much is known about the cause of this rapid growth or the potential impact it has on financial and economic stability. This study aims at filling this gap in the literature by examining micro-level data compiled from primary sources. I identify shadow banking activities of both regulated banks and non-financial firms in this project and plan to study their performances and risks. With the Chinese economy is at the forefront of some of the crucial developments in this area, this study can also shed light on the economics of shadow banking.