Core Viewpoint - The overall non-performing loan (NPL) ratio of listed banks in China remains at an excellent level in the first half of 2025, with most banks showing stable or improved asset quality, while some retail loan segments are experiencing increased pressure on asset quality [1][7]. Group 1: Non-Performing Loan Ratios - 20 out of 42 listed banks reported a decrease in NPL ratios compared to the beginning of the year, with declines ranging from 0.01 to 0.12 percentage points [2]. - 16 banks have NPL ratios below 1%, with Chengdu Bank having the lowest at 0.66% [2]. - Xi'an Bank saw the largest reduction in NPL ratio, decreasing by 0.12 percentage points to 1.6% by the end of June [2]. Group 2: Risk Management Trends - The risk management landscape is characterized by two main trends: ongoing risk clearance in real estate and local government financing platforms, and rising pressure on retail loans such as personal business and consumer loans [1][4]. - Agricultural Bank of China reported a 0.05 percentage point decrease in the NPL ratio for real estate loans by the end of June [4]. Group 3: Retail Loan Quality Concerns - Several banks, including Huaxia Bank and Chongqing Rural Commercial Bank, have reported increases in personal loan NPL ratios compared to the beginning of the year [7]. - Industrial and Commercial Bank of China acknowledged a general decline in retail loan asset quality due to market conditions, but expects improvements as economic policies take effect [7][8]. - Challenges in retail banking are attributed to consumption downgrades and adjustments in the real estate market, impacting credit card transactions and personal loans [7].