Contracting deposits add to warning signs

Chinese bank deposits have dropped following a crackdown on lenders manipulating their numbers and "illicit" means of attracting money, which is threatening to weigh on credit growth and hinder efforts to reignite the economy.

Four of the five biggest banks, led by the Industrial & Commercial Bank of China Ltd, posted a drop in deposits as they reported third-quarter earnings this week.

Central bank data showed it was the first quarterly decline for the nation's banking industry since at least 1999.