Rising bad debts raise alarm bells

Asset quality of commercial lenders also a concern as outstanding NPLs surge to $39b

A rapid growth in bad loans and the deteriorating quality of assets have raised analysts' concerns for commercial banks in the second half of the year.

Outstanding nonperforming loans increased by 249.3 billion yuan ($39 billion) in the first half of this year, said the China Banking Regulatory Commission, practically on a par with the growth of 250.5 billion yuan in outstanding NPLs recorded during the whole of 2014.