In a new video, the firm, which employs Charlene Chu, dubbed the "rock star" of Chinese debt analysis, said that China's lenders piled up debt and repackaged much of it in the form of Wealth Management Products (WMP's) and Asset Management Plans (AMP's).
By the end of 2016, WMP's and AMP's together amounted to 51% of China's GDP, according to Autonomous Research.
"WMPs and Chinese banks more generally have become so large and complex that any major problems could be just as destabilizing to the global economy as what occurred in 2008," the video said.
China has shown signs that it is aware of the risks that shadow banking presents. In a recent interview with Bloomberg, Chu stated that Beijing has shown a "surprisingly high appetite for pain" as it tries to curb some of the more egregious shadow banking practices.
Here's the video explaining shadow banking in China:
And here's a step-by-step explanation of the video: