浙商资产研究院_Pepper-2021Q1《China NPL - Market Report》（英文）

China NPL – Market Report 2021 Q1 Contents ……………………………………………………………………………………………………………………. 1 Notice to Readers 2 Chapter 1: Market Update 3 NPL Balance in China Commercial Banks 4 Chapter 2: Overview of Recent NPL Transactions 4 NPL Bid & Transaction Trend 4 Breakdown of NPL Transaction Volume by Market 7 Distribution of NPL Bid & Transaction Volume 8 Chapter 3: Overview of Online NPL Auctions 9 Chapter 4: Overview of Online Collateral Judicial Auctions 9 Overall Auction Summary 11 Auctions by Asset Type 13 Judicial Auction Overview in Zhejiang & Guangdong Province 15 Sponsoring Organisations Market Report in China NPL Market 2021 Q1 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 in August 2020 and will be published on quarterly 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 ……………………………………………………………………………………………………………………. “The increases in NPL disposal at different levels are expected to be incremental, and regulators will be keeping a very close eye on the maintenance of financial stability” Chinese Banks Disposed of US$467 billion Non-Performing Loans (“NPL”) in 2020 At the inaugural 2021 Work Meeting held on January 26, 2021, China Banking and Insurance Regulatory Commission (“CBIRC”) indicated that Chinese banks disposed of a record-breaking RMB 3.02 trillion (US$467 billion) in NPLs in 2020, with the total disposal amount during the period from 2017 to 2020 more than the total for the preceding 12-year period. In the Work Meeting, CBIRC highlighted that in 2020, China has made decisive achievements in preventing and resolving financial risks, including but not limited to, dealing with those overly risk-taking financial institutions such as Baoshang Bank and Anbang Insurance Group, cracking down on the shadow banking system, zeroing out peer-to-peer lending businesses, and steadily promoting the risk management of high-risk small and medium-sized banks, insurance and trust institutions. CBIRC has also pledged to tighten oversight of fintech companies, curb real-estate lending and push ahead with asset managemen