China banking system passes stress tests

SHANGHAI: China's banking system can weather large increases in bad debts or a sharp economic slowdown, the central bank said, although some individual banks would fall below required liquidity ratios in a worst-case scenario.

Concern about the huge growth in Chinese corporate debt since the global financial crisis and the risk of defaults has intensified this year as growth slows and authorities allow markets to play a bigger role in deciding winners and losers.