H1 profits to boost banks' asset quality

Chinese banks' asset quality will likely improve as a profitable first half of the year will likely encourage corporate borrowers to repay loans, experts said.

Industrial companies' profit increased by 19.1 percent year-on-year in the January-June period, compared to single-digit growth in 2016 and a decline in 2015.

Banks' asset quality will improve also because of regulators' firm efforts to address the problem of overleveraged companies, according to a Moody's report.