The reasons are as follows:

The situation of great downward pressure on the real economy has not yet fundamentally improved. It is now the process of the replacement of "old and new", and new economic formats are taking shape. Traditional production capacity has not been completely withdrawn. Speaking from its own perspective, non-performing loans have shifted regionally, gradually spreading from Jiangsu and Zhejiang regions to the central and western regions, northeastern regions, etc.

Liu Xinyi, President of Shanghai Pudong Development Bank, said that dawn is just around the corner. "The defective rate has shown different trends in various regions. It is difficult to say that it has bottomed out. It will take some time, but it will not be too long. Judging from various indicators, it is already in the darkness before dawn."