Nonperforming loans may eclipse the level of 2008

Analysts say soft economy, higher reserves will eat into banks' profits

Chinese banks' bad loans hit their highest point since September 2008 amid the pressure of an economic downturn, and they will continue to rise, making it likely that more low-end, export-oriented manufacturing companies in Jiangsu and Zhejiang provinces will default this year than in 2008, financial experts said.

Nonperforming loans of Chinese commercial banks hit 646.1 billion yuan ($103.7 billion) at the end of the first quarter.