Can Bank Asset Quality Improve After "Anti-Involution"? China Everbright Bank's Board Secretary Zhang Xuyang Responds

Deep News10-31

On October 31, China Everbright Bank held its Q3 2025 earnings conference. A key question addressed was whether bank asset quality would improve following the recent "anti-involution" trend. Board Secretary Zhang Xuyang stated that the bank prioritizes proactive and effective asset quality management, strictly controls new non-performing loans (NPLs), and deepens risk prevention in key sectors. As of September, the NPL ratio stood at 1.26%, with the NPL formation rate declining year-over-year. Both corporate loans and credit cards saw reductions in NPL volume and formation rates.

Zhang emphasized that "anti-involution" promotes orderly competition and enhances efficiency. To address structural imbalances in key industries and support their upgrade, the bank has strengthened industry research, refined investment policies, and implemented targeted risk management measures, balancing development and security to advance high-quality credit operations.

Looking ahead, Zhang noted China's strong institutional advantages and economic resilience provide a favorable environment for banks, while proactive macroeconomic policies further support risk mitigation. The bank will maintain a prudent risk appetite, seizing opportunities from industrial transformation by increasing credit support for relevant sectors and optimizing portfolio structure. It will also enhance its integrated and supply chain finance services, reducing information asymmetry risks. Additionally, the bank will bolster foundational credit capabilities, improve forward-looking risk control and process management, and accelerate digital risk control to adapt to evolving risks. Zhang expressed confidence that the bank's asset quality metrics will remain stable within a reasonable range.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment