Table of contents Risks for local government financing platforms are controllable but banks' non-performing loan ratios on the rise ll. Direction of the real estate market requires that banks proactively Ill. Commercial banks actively engaged in finding a solution to IV. Rural financial system reform accelerates from the promotion of rural-related financial services V. Chinese banks are focusing on efforts to expand their VI. Mobile banking in China is easing into an era of mobile financial services VIl. Private banking is a strategic emerging market niche for commercial banks VIll. Foreign banks continue to move into the China market IX. Shadow banking system poses a powerful challenge to industry rules and supervision/regulation X. Supervisory and regulatory institutions are actively strengthening nternational financial guidelines and banking industry supervision and regulati ConclusionsB Table of Contents Introduction 1 I. Risks for local government financing platforms are controllable but banks’ non-performing loan ratios on the rise 2 II. Direction of the real estate market requires that banks proactively respond to potential credit risks 4 III. Commercial banks actively engaged in finding a solution to financing problems for small and medium enterprises 6 IV. Rural financial system reform accelerates from the promotion of rural-related financial services 8 V. Chinese banks are focusing on efforts to expand their international footprint 10 VI. Mobile banking in China is easing into an era of mobile financial services 13 VII. Private banking is a strategic emerging market niche for commercial banks 16 VIII. Foreign banks continue to move into the China market 19 IX. Shadow banking system poses a powerful challenge to industry rules and supervision/regulation 22 X. Supervisory and regulatory institutions are actively strengthening international financial guidelines and banking industry supervision and regulation 24 Conclusions 26 Contacts 27 Acknowledgements 27