Chinese banks and other financial institutions should pay special attention to investment risks in power, coal, steel, real estate, auto and transportation industries.

Liu Mingkang, chairman of the China Banking Regulatory Commission (CBRC), made the remark at a conference on Chinese financial situation in the first half of this year.

The overcapacity problem and adjustment of industrial structure in these industries may increase credit risks of banks, he told leaders of major banks and other financial institutions attending the meeting.

As China continues its reform on financial systems, banks are facing more market risks that may be brought by fluctuation of exchange rate, innovation of financial products and gradual marketization of interest rate, he said.

Banks should pay intensive attention to possible risks concerning loans to enterprises with high-level energy consumption and pollution, because these enterprises may face operational difficulties under circumstances of fuel price hike and governmental macro-control policy, he said.

Liu asked all banking institutions to strict their credit standards so as to rein in loans. Figures show China's RMB loans outstanding totaled 21.53 trillion yuan (2.7 trillion U.S. dollars) at the end of June, up 15.24 percent from June last year.

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