This Businessweek article, China Falling? Not So Fast, explains why China’s financial system is not going to suddenly collapse. Its industries maybe receiving easy credit, but they aren’t unproductive. In a sentence:
China’s real economy, and its job picture, remain strong, compared with nearly every other economy on earth.
The Economist goes into a bit more detail here… The government doesn’t seem to be worried about tightening unsustainable banking at the expense of others, in order to prevent “wasteful lending and unproductive spending”. Structurally, it seems like in a good position to do so.