On August 29, China Zheshang Bank held its 2025 interim results briefing. Addressing asset quality concerns, Pan Huafeng, Assistant President and Chief Risk Officer of China Zheshang Bank, stated that the bank expects overall asset quality to remain stable with positive trends in 2025.
Pan Huafeng also outlined that China Zheshang Bank will implement four main measures. First, optimizing credit asset allocation and improving the bank's overall asset structure. The bank will accelerate the enhancement of investment research capabilities, strengthen industrial research guidance for credit asset allocation, focus on industries related to national strategic priorities and changes in national regulatory policies, implement differentiated credit policies, and deepen its presence in Zhejiang province while continuing to improve credit asset allocation in its home market.
Second, comprehensively improving risk mechanisms and enhancing digital risk control capabilities. The bank will strengthen head office vertical management of risk review standards, strictly control administrative risks, and effectively implement a three-pronged supervision mechanism comprising head office credit re-examination, operational supervision, and post-lending management. It will accelerate AI applications in risk control and effectively upgrade the risk early warning system and review monitoring platform.
Third, strengthening key risk management and strictly preventing new credit risks. In the real economy sector, the bank will strictly control enterprises in overcapacity industries and those with backward, low-end capacity, while preventing industry concentration and customer concentration risks. In real estate, it will maintain a combined strategy of regional, client, and project controls to support stable development of the real estate industry. The bank will strictly implement full-process closed-loop management, adopt tailored measures for existing risk clients on a case-by-case basis, and accelerate risk resolution. For small and micro enterprises and retail business, it will adhere to controlling new additions while reducing existing risks, implementing unified centralized management of major risk segments. The bank will strengthen scenario-based finance research, strictly manage market entry, and improve client quality.
Fourth, continuously accelerating non-performing loan disposal and comprehensively resolving existing risks. Through comprehensive and categorized measures, combining independent collection with market-based disposal, the bank will focus on improving efficiency and achieving tangible results in resolving major, difficult, and complex risk projects.