About 70 percent of bankers expect non-performing loan ratios in China to be below two percent within three years, according to the latest Chinese Bankers' Survey produced by the China Banking Association in partnership with PwC.
The survey was based on interviews with 1,920 bankers from 163 institutions.
"The challenge of non-performing loans has been uppermost in the minds of China's bankers in recent years and an increasing non-performing loan balance was cited as the main pressure on their institution by 87 percent of respondents in 2016," said Monica Ng, financial services partner for PwC Hong Kong,
She added it was supplanted in the 2017 survey by concerns about a slowdown in the rate of profit growth.
Meanwhile, the Cross-border Banking Demand Index rose one to 56.9 for the first quarter this year, says a report by China CITIC Bank International yesterday.
The increase indicated stronger demand for Hong Kong's cross-border banking services from mainland corporations and individuals bolstered by improving conditions and mainland China's clearer policy prospects.
The Corporate Demand Index climbed 0.9 to 55.1 while the Individual's Demand Index rose 1.2 to a 64.1 high.
Liao Qun, chief economist and general manager of research at China CITIC Bank International, said that eight of the nine corporate demand sub-indices bounce back from last quarter. The figure showed corporations have more confidence in using cross-border banking services.
The asset management and financial consultancy and bond issuance sub-indices outran the others.