Goldman Sachs report warns of 'shadow banking' risk elements

China might face credit losses of up to 18.6 trillion yuan ($3 trillion), because the speed of its credit expansion has exceeded that seen prior to other credit crises in history, Goldman Sachs Group Inc has warned.

In a report dated Aug 5, it said the rapid pace of China's credit expansion, increasingly sourced from the inherently more risky and less transparent "shadow banking" sector, has become a top concern for global markets.