The article debunks five common myths about China's banking system. It discusses the misconceptions surrounding the cost of capital in China, the role of state-owned banks, the effectiveness of bank recapitalization, the state of the banking sector, and the growth potential of the Chinese banking industry. The researchers argue that China's cost of capital is not excessively low, state-owned banks have made progress, bank recapitalization efforts are not a sham, the banking sector is not out of the woods yet, and the Chinese banking system is not a booming growth industry.