On a certain date, Sheng Rong Company (Jilin Sheng Rong Asset Management Co., Ltd.) announced that it had become the 100th local institution approved to access the People's Bank of China's credit reporting system nationwide. In the blink of an eye, there were already 100! (Previously, on a certain date, the media had just reported the number as 99.) The intensive access of local institutions to the central bank's credit reporting system can be described as a surge.

Activated non-performing loan transfers to local access to the central bank's credit reporting system, with a traceable history... very short. On a certain date, Guangxi Guang Investment Asset Management Company announced that it had received approval to access the People's Bank of China's credit reporting system on that day, becoming the first local entity in the country to be approved for such access. Why? Because, by this year, the policy had changed. In a certain month, the China Banking and Insurance Regulatory Commission issued the "Notice on Carrying Out Pilot Work on Non-performing Loan Transfers," designating the Banking Credit Asset Registration and Circulation Center (Yindeng Center) as the pilot platform for transferring non-performing loans. At the same time, it stipulated that local entities could accept bulk transfers of personal non-performing loans (credit card overdrafts, personal consumer loans, personal business loans) without regional restrictions. Thus, local entities were unlocked from their local confines and could participate in the national non-performing loan transfer process.

At the end of the year, the China Banking and Insurance Regulatory Commission (CBIRC) issued the "Notice of the General Office of the China Banking and Insurance Regulatory Commission on Carrying Out the Second Batch of Pilot Work for Non-Performing Loan Transfers," further expanding the pilot scope and clarifying pilot requirements. The advancement of the pilot work has activated the transfer of individual non-performing loans and also provided opportunities for local regions. According to the "Annual Report on the Pilot Business of Non-Performing Loan Transfers (Year)" released by the YinDeng Center, in Year , the transaction volume of batch transfer of individual non-performing loans increased significantly, with a total of 10,000 listings and 10,000 transactions, corresponding to non-performing loans with an outstanding principal and interest balance of 100 billion yuan, a year-on-year increase of 100%. Currently, there are 100 local regions that have opened business accounts at the YinDeng Center. According to the report just released by the YinDeng Center in January Year , the transaction volume of non-performing loan transfers in the first quarter of Year was 10,000 transactions, corresponding to non-performing loans with an outstanding principal and interest balance of 10 billion yuan, a significant increase compared to 10,000 transactions and 10 billion yuan in the first quarter of Year . In terms of individual non-performing loan business—in the first quarter of Year , the batch transfer of individual non-performing loans resulted in 10,000 transactions, corresponding to non-performing loans with an outstanding principal and interest balance of 10 billion yuan, a noticeable increase compared to 10,000 transactions and 10 billion yuan in the first quarter of Year . The YinDeng report also shows that in the first quarter of Year , the composition of batch individual asset types included credit card overdrafts of 10 billion yuan, accounting for 100%; personal consumption loans of 10 billion yuan, accounting for 100%; and personal business loans of 10 billion yuan, accounting for 100%.

So, what is the current situation and trend of non-performing loans in banks? Let's see what the authoritative views in the banking industry have to say—On a certain date, the China Banking Association released the "Annual Report on the Development of China's Banking Industry." Regarding the situation of non-performing loans, it stated the following: The banking industry continues to enhance comprehensive risk management capabilities, constantly innovates non-performing asset disposal methods, and efficiently promotes the disposal of non-performing assets, with major operational and risk regulatory indicators remaining within a reasonable range. By the end of the year, the non-performing loan ratio of commercial banks was .%, a decrease of . percentage points from the end of the previous year... From the perspective of business types, the downward pressure on the asset quality of retail loans is more pronounced than that of corporate loans. In terms of regional performance, the non-performing loan ratios of banks in most provinces and cities continue to decline, but there are rebounds in some economically developed regions and provinces in the central and western parts of the country. In the year, with the continuous improvement of financial risk prevention policies, the banking industry further solidified asset classification, promoted the diversification and refinement of risk prevention indicators, enhanced the ability to identify non-performing assets, and continued to vigorously and through multiple channels promote the disposal and revitalization of non-performing assets...

Simply put, there is pressure on non-performing loans (NPLs) in the banking sector, especially on personal NPLs, and the pressure has increased in some regions. However, the banking industry has strict requirements to reduce NPL ratios, so they will spare no effort to dispose of non-performing assets "vigorously," "through multiple channels," and "efficiently." This is the case in the banking sector. Additionally, statistics show that by the month and year, over consumer finance companies had listed more than personal NPL asset packages for transfer on the Silver Docking Network, with outstanding principal and interest totaling close to billion yuan. "Accelerating the clearance of non-performing assets" is considered the main theme for consumer finance companies in the year. Whether it's the banking sector's "vigorously," "through multiple channels," and "efficiently" disposal or the consumer finance companies' "accelerated clearance," the result is the decisive release of non-performing asset packages to the market, thus forming the current stance of the supply side. On the other side of the "release," local entities are entering the market at just the right time (they are entering with a "mission" in mind), perfectly playing the role of "picking up the pieces."

Since market opportunities have fallen from the sky, local entities have naturally taken the lead. According to statistics from the YinDeng Center: As of the quarterly period, the transaction scale of non-performing loans (outstanding principal and interest) was . billion yuan for financial asset management companies (commonly referred to as the "Big Five"), and . billion yuan for local asset management companies (local entities). Local entities are undoubtedly the main players. Looking at the "Top Ten Active Transferors in Bulk Personal Business" for the quarterly period as reported by the YinDeng Center (in no particular order), all are local entities—Jilin Shengrong Asset Management Co., Ltd.; Changsha Xiangjiang Asset Management Co., Ltd.; Tianjin Binhai Zhengxin Asset Management Co., Ltd.; Beijing Guotong Asset Management Co., Ltd.; Beijing Asset Management Co., Ltd.; Zhejiang Zheshang Asset Management Co., Ltd.; Jiangxi Ruijing Financial Asset Management Co., Ltd.; Heilongjiang Guorui Financial Asset Management Co., Ltd.; Kunpeng Asset Management Co., Ltd.; and China Resources Yurun Asset Management Co., Ltd.

Competition for non-performing asset packages across the nation requires indispensable support from the credit reporting system. At the local level, access to the credit reporting system directly enhances local work efficiency. Moreover, having a presence in the credit reporting system is a manifestation of authority, which is crucial for local entities. For the People's Bank of China's credit reporting system, local entities joining represent an extension of the credit scope, benefiting the financial system and society as a whole. In fact, among the "Top Ten Active Assignees in Bulk Personal Business" in the aforementioned quarterly period, the parent company of Beijing Asset Management Co., Ltd., Beijing Financial Holding Group, is building the "Jingyun Credit" platform based on Beijing's financial big data, complementing the national People's Bank of China credit reporting system. In summary, local businesses have needs and growth momentum, leading to the practical necessity for credit reporting. Intensive access to the central bank's credit reporting system is a sign of enterprise and industry development. Among the "Top Ten Active Assignees in Bulk Personal Business" in the quarterly period, those that have announced joining the central bank's credit reporting system include: Sheng Rong Company, access date: [Month Day, Year]; Binhai Zhengxin, access date: [Month Day, Year]; Zheshang Asset, access date: [Month Day, Year]; Heilongjiang Guorui, access date: [Month Day, Year]; Jiangxi Ruijing, access date: [Month Day, Year]; and Huarun Yunkang, access date: [Month Day, Year] (the first in Southwest China). Among these, [Number] joined in [Year], and [Number] joined in [Month, Year]. Combined with the beginning, Sheng Rong Company's recent announcement of being the [Number]th to join, the aggressive stance of local entities in the non-performing loan business is clearly visible.