At the beginning of 2021, the China Banking and Insurance Regulatory Commission issued a notice on the pilot work for the transfer of individual loans in batches and single-household non-performing loans. Among them, the non-performing loan acquisition institutions participating in the pilot program include financial asset management companies, qualified local asset management companies, and financial asset investment companies.

Subsequently, the Banking Credit Assets Registration and Transfer Center (hereinafter referred to as the "Yindeng Center") issued asset transfer rules, letter disclosure rules and bidding rules, and the pilot business officially entered the practical stage.

The four major asset management companies that have successfully completed their policy tasks and are undergoing commercial transformation are actively testing new business areas and exploring development paths.

The single-family-to-business NPL transfer pilot broke the ice. Previously, the bulk transfer of corporate non-performing loans was the main method, but the bulk transfer model had some shortcomings. For example, it was difficult for the acquirer to achieve full due diligence in a short period of time. The single-account transfer model is in line with the development trend of refined operation of non-performing assets. The liberalization of batch transfers of personal loans is conducive to reducing the non-performing pressure on banks; at the same time, it also increases the supply of non-performing assets for the non-performing asset market.

China Huarong actively responded to the pilot work on the transfer of non-performing loans, organizing its subsidiaries to register accounts at the Yindeng Center as soon as possible, to understand the bank transfer plan, to conduct a thorough due diligence of basic assets, and to participate in bidding prudently and rationally. China Huarong Jiangsu Branch successfully bid for non-performing loans from a real estate company in Jiangsu transferred by a bank through an open auction through Yindeng Center, with a total of 160 million yuan in principal and interest. Since 2014, the real estate project involved in the household’s creditor’s rights has had frequent debt disputes, and the liquidity of the company has been under pressure, which has caused the project to stop construction one after another, affecting the owners’ rights and interests and local social stability. The local government attaches great importance to it. China Huarong Jiangsu Branch played its rescue financial function in a timely manner, worked with local governments to jointly promote the subsequent disposal of assets, revitalized existing assets, supported the local economy, and ensured social stability.

It is reported that this is the first single-household NPLs transferred through Yindeng Center in Jiangsu Province, and it is also China Huarong's first successful attempt in this business field.

In the first batch of six non-performing loan transfer pilot businesses launched by the Yindeng Center this year, China Great Wall Assets successfully won a single-account corporate non-performing loan publicly transferred by ICBC.

After the China Banking and Insurance Regulatory Commission issued a notice on the pilot batch transfer of single-account corporate and personal non-performing loans in early 2021, China Great Wall Assets, with the support and guidance of the regulatory authorities, visited various pilot banks to understand the transfer plan, and organized branches to conduct due diligence on basic assets. , According to market rules, prudent pricing with restructuring thinking and rational bidding, and finally won the first victory in the pilot of single-account corporate loan transfer.

According to industry insiders, the successful transfer of the first batch of pilot projects of the Yindeng Center indicates that the financial asset management company has opened a new channel for acquiring single-account corporate and personal non-performing loans through a third-party platform.

China Great Wall Assets will take this opportunity to continue to focus on the main business, acquire and dispose of non-performing assets through multiple channels and platforms, continuously improve the business capabilities of the main business, and better fulfill its mission and responsibility to resolve financial risks and serve the real economy.

Some experts said that the liberalization of batch transfers of personal non-performing loans has lowered the threshold for bank non-performing loan transfers and improved the efficiency of banks' non-performing loan disposal.

China Huarong's subsidiaries actively participated in the pilot work. In order to promote business development steadily and standardly, China Huarong formulated timely management measures for participating in the pilot acquisition and disposal of personal non-performing loans. The company headquarters and 33 branches completed the account opening in Yindeng Center as soon as possible, actively connecting with banks, making thorough due diligence Bid rationally. On the basis of the first single-account transfer project of corporate non-performing loans in the early stage, China Huarong Jiangsu Branch purchased a personal non-performing loan asset package of RMB 4.5818 million through the Yindeng Center through an open bidding. This is China Huarong's successful participation in the bulk transfer of personal non-performing loans.

China Eastern successfully won the bid for the first batch of pilot projects for the batch transfer of bad personal loans. On March 1, the first batch of pilot projects for batch transfer of personal non-performing loans were auctioned at the Yindeng Center. After multiple rounds of competition, China Eastern finally successfully won the bid for the bad asset package of Ping An Bank's personal business credit loan, opening a new chapter for the state-owned financial asset management company in the field of bad personal loan to practice its main responsibility and resolve financial risks.

According to reports, China Orient actively responded to the call of the regulatory authorities, and earnestly participated in the due diligence of the batch transfer of individual loans by various pilot institutions, and finally successfully won the bad personal loan package of Ping An Bank, which fully reflects China Orient’s main responsibility and main business. Innovation and hard power.

The relevant person in charge of China Orient stated that after the asset package is bid, it will conduct in-depth communication and discussion with the asset transferor on subsequent asset disposal and collection, financial consumer protection, etc., and realize bad personal loans on the basis of fully learning from high-quality management and disposal experience. The smooth operation of the entire process from asset transfer to disposal.

For asset management companies to develop personal loan-type non-performing assets business, some experts suggest that acquisitions need to be cautious. At the initial stage of the pilot, various regulations on the acquisition and disposal of personal loan-type non-performing assets and the risk control system have yet to be improved. Selection and screening require more manpower and material resources and higher costs. Small market institutions need to be treated with caution.

Some people in the industry also expressed that it is necessary to strengthen cooperation with intermediary agencies, including law firms and appraisal firms. Personal loans are small, scattered, and large in quantity. Valuation and pricing is a core issue in the acquisition of non-performing loans of personal loans. Therefore, it is necessary to strengthen cooperation with external agencies to improve the efficiency of acquisition of non-performing loans of personal loans.

Regarding the disposal of non-performing personal loans, experts suggest that diversified disposal methods, including non-litigation collection, litigation collection, and asset securitization, should be adopted. Asset management companies can also make full use of technological means and use digital means to improve the efficiency of disposal.