2024年中国不良资产市场报告

Contents 1Notice to Readers2Chapter 1:NPLMarket Update3Chapter 2: Overview of Recent NPL Transactions3NPL Bid &Transaction Trend Overview4Breakdown of NPL Transaction Volume byMarket6NPL Bid & Transaction Volume Distribution7Online NPL Auction Overview9Chapter 3:Overview of Personal NPL Market13 Chapter 4:Overview of Collateral Judicial Auctions13 Overall Judicial Auction Summary15 Judicial Auctions by Asset Type17 Judicial Auction Overview inZhejiang & Guangdong Province 19About Us ThisReport,undertaken by Zheshang AssetResearch Instituteprovides readers with a betterscope to understand the dynamics and recentactivitieswithin China’s NPL market. The firstedition was released in August 2020 and will bepublished on anannual basis to focus onrecentindustry activities, insights into the primary andsecondary NPL markets and the online judicialauction market. General Manager of Zheshang AMC CSO of Zheshang AMC Dean of Zheshang Asset Research Institute Chapter 1:NPL Market Update In 2024, the overall asset quality of China’s banking sector remained stable, with major financial institutions continuingtheir efforts to dispose ofnon-performing assets and actively adopting various measures to prevent and resolve financialrisks. At the end of Q1 2024, the NPL ratio of commercial banks stood at 1.59%, unchanged from the end of Q4 2023, reflectinga stable trend. Moving into Q2, the NPL ratio declined by 3bpsquarter-on-quarter, highlighting a positive downwardtrajectory and representing the banking industry’s progress in risk management. By the end of Q3, the NPL ratio remained flat quarter-on-quarter, but the absolute NPL balancerose to RMB 3.38 trillion(US$469 billion), up RMB 37.1 billion from the previous quarter.As of the end of 2024, the NPL ratio further declined by 6bps, while the NPL balance dropped by RMB 97.7 billion to RMB 3.28 trillion. For the full year,China’scommercial banking sector experienced an increase in NPL balance alongside a decline in NPLratio, with a gradually slowing pace of reduction. This trend indicates progress in asset quality management but alsounderscores the need for continued vigilance.Financial institutions are encouraged to refine their NPL disposal strategiesto preserve the stability of asset quality. Chapter 2:Overviewof Recent NPL Transactions NPLBid&Transaction Trend Overview Source: Public Information, ZheshangAssetResearch Institute In 2024, theNPL bid volumeslightly declined compared to 2023, while transaction volume experienced a notable drop,reflecting reduced market liquidity. Breakdown of NPL Transaction Volume by Market Generally, only licensed AMCs (national AMCs and provincialAMCs) are allowed to purchase NPLs on a “bulk” basis fromChinese banks (3 or more NPLs per the current definition of “bulk” transfer). The acquisition of NPL portfolios directly fromChinesebanks or other Chinese financial institutions is referred to asaPrimary Market Transaction. The acquisition of NPL portfolios from licensed AMCs by investors (both domestic and foreign) and the subsequent transfer ofNPL portfolios among investors are referred to asSecondary Market Transactions. This report encloses primary market transactions and part of secondary market transactions, which only includes transactiondata from the trades made by licensed AMCs to investors. It does not include any transactions between two private investors. In terms of transactionvolume, thetotal size of NPL transactions from banksin 2024 was approximately RMB 301.7 billion,representing a year-on-year decrease of 23.0%. Among them, joint-stock commercial banks accounted for RMB 105.3billion, or 34.9% of the total; city commercial banksaccountedfor RMB 64.8 billion (21.5%); theBig Five Banksaccountedfor RMB 63.5 billion (21.0%); rural commercial banksaccountedfor RMB 56.0 billion (18.6%); other banksaccountedforRMB 9.0 billion (3.0%); and policy banksaccountedfor RMB 3.0 billion (1.0%). Joint-stock and city commercial banks werethe major contributors to the disposal volume. Among the buyers in China’s primary NPL market, approximately RMB 178.5 billion (59.2%) were acquired by the Big FiveAMCs(CITICFAMC, Cinda, Orient, Great Wall, Galaxy), RMB 71.9 billion (23.8%) byprovincial licensed AMCsandRMB51.2 billion (17.0%) byother investors. The acquisition volume declined across all buyer categories year-on-year, withother investorsrecording the largest decline of 29.7%. In 2024, thetotal NPL sales from licensed AMCsreached approximately RMB 211.2 billion, a year-on-year decline of37.8%. Of this, the Big Five AMCs accounted for 62.7%andprovincial licensed AMCsfor 37.3%. Among the Big Five,CITICFAMCheldthe largest proportion(21.2%)of NPL transactions, while Galaxy AMC accounted for the smallest at1.4%.Regardless of the bid scale or transaction scale, the Big 5 AMCs (more specifically, the previous Big 4 AMCs) stillmaintain their position as the dominant sellers in the secondary market. Regarding NPLs sold by licensed