Chinese banks are facing a big challenge due to a high amount of bad loans. To prevent collapse, they are planning to list overseas. This move is to comply with WTO rules opening up China's banking market to foreign competition. Despite having a lot of bad loans, China's economy has been growing. The government is working on resolving the bad loan issue before the overseas listings. The Chinese banking system has more bad loans compared to other Asian countries. The exact amount of bad loans in China is hard to determine.