# Nobel Laureate Prof. Michael Spence on systemic reform in China

1 Faculty News March 24, 2013 ![CNBC logo](/sites/default/files/styles/246w/public/assets/images/con_034412.gif?itok=MRidxYS3)>

Excerpt from [CNBC](http://video.cnbc.com/gallery/?video=3000156169&play=1) -- "My general impression is that they're really focused on this. In two respects they want to get their arms around the dimensions of the shadow banking system and I think they're probably going to engage in a process of regulating it. I'm quite sure they have the assets to deal with it on the balance sheet of the state so on balance I think my impression is that it's been a bit of a surprise but there's been an alert response."

[Watch the video](http://video.cnbc.com/gallery/?video=3000156169&play=1)