Banking regulator warns on rising risks

The China Banking Regulatory Commission has urged banks to pay close attention to the credit risks in key industries affected by the economic downturn and hit by overcapacity woes.

Those industries include real estate, construction machinery, iron and steel, wind power equipment, and photovoltaic cells. In addition, the CBRC also stressed the risks to companies that are expanding fast, heavily indebted, highly leveraged and funded by private equity.

Experts estimated that the outstanding loan portfolio of those industries might amount to around 30 to 40 trillion yuan ($4.83 to 6.44 trillion).