Banking sector can handle NPLs

The Chinese banking system is healthy and can handle its nonperforming loans, China Huarong Asset Management Co Ltd Chairman Lai Xiaomin said.

Huarong is one of the four State-owned asset management companies set up in 1999 to tackle bad loans, the other three being China Cinda Asset Management Co Ltd, China Great Wall Asset Management Co Ltd and China Orient Asset Management Co Ltd.

"My confidence comes from the fact that the banking system has been making profits," Lai told the 10th Asian Financial Forum in Hong Kong.