JPMorgan's Ulrich Sees Satisfactory China Bank Earnings

The video discusses the challenges faced by Chinese banks, including rising defaults and narrow margins. Despite these issues, the first quarter showed strong GDP growth and industrial profits. Concerns are raised about non-performing loans and off-balance sheet debt, especially among smaller lenders. The Chinese government is tightening controls on shadow banking and excessive leverage. The video highlights the need for balancing liquidity with curbing credit growth, and anticipates structural reforms post the 2017 party congress to ensure long-term economic health.

What is the significance of the non-performing loans ratio in the context of the Chinese banking system?

What potential reforms are anticipated after the party Congress in October 2017?