China's banking sector is currently facing a severe crisis. In the week ending June 24th, 40 Chinese banks vanished as they were absorbed into larger institutions, including 36 banks into Liaoning Rural Commercial Bank. This wave of consolidations includes the collapse of Jiangxi Bank of China, further escalating the turmoil. The crisis is attributed to the mismanagement of small, rural banks, many of which are burdened with toxic debts. Zhongzhi Enterprise Group, a prominent Chinese 'shadow bank,' has also filed for bankruptcy liquidation in a Beijing court. China's banking system holds 340% of its GDP in assets, raising concerns about potential global economic impacts.