China is further tightening risk management regulations on the banking industry and stepping up efforts to build and improve a comprehensive risk management system.

Regulators emphasized on Thursday the importance of comprehensive risk management and reminded banks to be on guard against potential risks that may be triggered by the bursting asset bubbles.

"Our banking industry is facing the most severe operating pressure since the reform and listing of State-owned banks in 2004. As the situation will not improve in a short time, banks should be prepared for a tough, long-term battle," said Yu Xuejun, chairman of the supervisory board for key State-owned financial institutions of the China Banking Regulatory Commission.