HONG KONG -- Bad loans in consumer-facing industries have crept upward at China's biggest state-owned banks while a key gauge of profitability has fallen, posing a fresh challenge in managing loan quality amid slowing economic growth.
The top five state-owned banks -- Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications -- this week reported total nonperforming loans of 1.3 trillion yuan ($183 billion) as of the end of June, up 4% from December.
