On 5th November, China Banking Regulatory Commission disclosed that by the end of the third quarter, the non-performing loan ratio for China's commercial banks has rose to 1.59% from 1.5% in the second quarter.

ANBOUND’s research team has earlier pointed out that in the next few years, following the continued economic downturn, the increased in structural adjustment and the increased exposure of the debt problems in enterprises and local governments, the commercial banks’ non-performing assets will continue to increase and what happened now is merely the beginning of the credit risk cycle.

The commercial banks in China will be facing a new round of poor business performance, reduction in valuation and the "ice age" of the business operation.