Investment Daily Note

The China Banking Regulatory Commission announced that bad-loan ratio held at 1.75% in the 2Q after almost three years of increase, suggesting that the efforts to resolve nonperforming debt have stepped up. However, it is estimated that the industry’s recovery is not yet to come. Market consensus forecast of the potential bad-loan ratio may reach 20%.

US stocks closed lower with energy companies dragged down by falling oil prices, and bank and health stocks also slided, hurt by weaker-than-expected earnings. The price of crude oil fell 2.5 percent to US$41.71 a barrel in New York, it isestimated that oil-related stocks may be suppressed.