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mic downturn?Not necessarily.The banks have a tendency to be lagging indicators. Only after a certain amount of time has passed will China39。re finally growing, incrementally, after years of declining. Industrial amp。s largest bank by assets, saw its nonperforming loans rise by billion yuan (about $606 million) in the fourth quarter。s bad loans in the fourth quarter rose billion yuan. (In China, nonperforming loans are those that have at least a 30% chance of turning sour.)Smaller banks also saw some increases in bad loans. China Minsheng Banking Corp., the country39。s banking sector edged up percentage point in the fourth quarter from the third quarter, the first rise in the past six years.The regulator didn39。s only now do we see a sign of it in banks39。The second quarter of this year will be one of the peak seasons for the repayment of property loans and local government borrowings. With a slowing economy, we can expect that higher nonperforming loans are on the cards,39。 cash flows.Besides property, analysts say local governm