Top 30 banks to be evaluated

The top 30 banks in China will be classified as systemically important authorized institutions, meaning a new evaluation method will apply, while local government bonds are estimated to reach 6.5 trillion yuan (HK$7.69 trillion) this year, according to the data from China's Ministry of Finance.

The People's Bank of China and China Banking and Insurance Regulatory Commission Bank announced it would regulate banks on the list to defend against the risk of them becoming "too big to fail".

Property-linked loans in China now account for 39 percent of total bank loans, and a large amount of capital from bonds, equity and trust investments have flowed into the real estate industry, Guo Shuqing, the chairman of the China Banking and Insurance Regulatory Commission said.

The mainland government may raise their tolerance to defaults of the state-owned enterprises, S&P Global ratings said.

Separately, William Pesek, a Tokyo-based journalist, warned that China is facing a Lehman Brothers moment, adding that recent turmoil in credit markets may turn to systematic risk.

Meanwhile, 24 mainland companies raised US$14.4 billion through overseas primary equity market in November, totaling US$85.5 billion this year. In addition, the International Monetary Fund estimated that the world has a record-high debt level of around US$12 trillion (HK$93.6 trillion).