China plays down stability concerns

China’s lenders have risks under control, despite concerns that massive local debts and ripple effects from failed informal lending schemes threaten the country’s financial stability, the country’s top banking regulator said.

“We are generally concerned about local government financing loans, real estate loans, shadow banking and other areas of potential risk,” Liu Mingkang, chairman of the China Banking Regulatory Commission, said in remarks released today on the CBRC’s website.