China pledges to act against bad loan risk

China’s banking authorities vowed to ramp up efforts to curb potential increases in non-performing loans, especially from industries beset by overcapacity, Reuters reported. In comments published on Monday, head of the banking regulator Shang Fulin gave the latest official warning on financial risks as the government pushes ahead with structural reforms. Shang said in a meeting with bank executives that banks must seek various channels to safely dispose of bad loans in industries facing acute overcapacity problems. To pursue a more sustainable growth model and eventually rebalance the economic structure, Beijing this year has intensified a campaign to reduce overcapacity pressure in several industries.