浙商资产研究院+pepper-2020年中国不良资产市场报告（英文）

China NPL – Market Report 2020 Contents ……………………………………………………………………………………………………………………. 1 Notice to Readers 2 Chapter 1: Market Update 3 NPL Balance in China Commercial Banks 5 Chapter 2: Overview of Recent NPL Transactions 5 NPL Bid & Transaction Trend 5 Breakdown of NPL Transaction Volume by Market 8 Distribution of NPL Bid & Transaction Volume 9 Chapter 3: Overview of Online NPL Auctions 10 Chapter 4: Overview of Online Collateral Judicial Auction 10 Overall Auction Summary 12 Auctions by Asset Type 14 Judicial Auction Overview in Zhejiang & Guangdong Province 16 Sponsoring Organisations Market Report in China NPL Market 2020 A publication from: Page | 1 CHINA NPL – MARKET REPORT Notice to Readers ……………………………………………………………………………………………………………………. This Report, undertaken jointly by Zheshang Asset Research Institute and Pepper Group (China), provides readers with a better scope to understand the dynamics and recent activities within China’s NPL market. It has released its first edition since August 2020 and will be published on a quarter basis to focus on current government regulations and policies, recent industry activities, insight into primary and secondary market of NPL transactions, and online judicial auction market. Li Chuanquan Deputy General Manager of Zheshang AMC CSO of Zheshang AMC Dean of Zheshang Asset Research Institute Karen Chen CEO of Pepper China Co-Head Principal Investments Asia Pepper Group Page | 2 CHINA NPL – MARKET REPORT Chapter 1: NPL Market Update ……………………………………………………………………………………………………………………. “Looking forward, there may be a boom in both supply and demand of NPL market” China Plans to Let Banks Sell Sourced Personal Loans to Ease Risks The China Banking and Insurance Commission (CBIRC) has launched trials “Notice Concerning the Undertaking of Non-performing Loan Transfer Trial Work” on January 12, 2021, to accelerate the disposal of personal non-performing loans (NPLs), and states that NPLs for the trial would include: • Single Corporate NPL; • Bulk personal NPLs (confined to personal consumer credit loans, credit card overdrafts, and personal business credit loans; Excluding the personal mortgage and vehicle loans) Under the trials Chinese banks will be permitted to transfer above NPLs to five national asset management companies (AMC) and regional AMCs, and regional AMCs will be permitted to accept corporate NPLs from banks within the same provincial jurisdiction, although no reginal restrictions will apply to the bulk acceptance of personal NPLs. The first group of participants in the trials will include the big six state-owned banks and 12 joint-stock banks that operate in China on a nationwide basis, as well as national AMCs and qualified regional AMCs. Comments: The move will beef up