China will actively help firms in the traditional manufacturing sector to get out of trouble next year, and keep pushing lending to smart and green manufacturing industries, the banking and insurance regulator said.

The non-performing asset in some small and medium banks are rising, curbing their lending capability, Yang Liping, chief supervision officer with the regulator told reporters at a briefing in Beijing.

Disposing of the bad loans of small and medium banks needs time, and will not be improved in the short term, Yang added.