China's financial sector has entered a new phase upon opening up its banking sector to private capitals. However, ANBOUND’s research team thinks that it doesn’t mean many opportunities awaiting the private banks. On the contrary, there are many potential risks that have been formed over the years and if not well managed the private banks may turn into historical inheritor of bad debts. In addition, it is worth noting that values of banking assets will increase align with the increment of capital inflow, thus becoming the pursuit target of the investors.