Second, commercial banks used their own resources including reserves, profit and capital, to write off non-performing loans. Third, $ 45 billion foreign exchange reserves were used to recapitalize two state-owned commercial banks - the Bank of China and China Construction Bank. Meanwhile, efforts have been made to clean up their non-performing assets and improve their internal risk control and corporate governance.
In particular, growth in household spending, which was weak earlier in the year, has picked up in recent months and continues to be supported by job gains, rising household wealth, and favorable consumer sentiment. In addition, business fixed investment has turned up this year after having been soft last year.