2024年中国不良资产市场报告（英文版）_22页_1mb

NPL Market Analysis

Market Overview

• China's banking sector maintained stable asset quality in 2024, with a commercial bank NPL ratio of 1.59% by Q1, unchanged from Q4 2023.
• The NPL ratio decreased by 3 bps in Q2, showing a positive downward trajectory.
• Total NPL balance reached RMB 3.38 trillion by Q3, up by RMB 37.1 billion from Q2.

NPL Transaction Trends

• Primary market transactions saw a 23% YoY decline in total volume (RMB 301.7 billion).
• Major contributors: Joint-stock banks (34.9%), city commercial banks (21.5%), and Big Five Banks (21.0%).
• Secondary market sales decreased 37.8% YoY (RMB 211.2 billion), dominated by state-owned AMCs (62.7%) and provincial AMCs (37.3%).

Personal NPL Developments

• Market exploded in 2024: 573 portfolios transacted, RMB 158.35 billion in value (64% YoY growth).
• Top suppliers included Ping An Bank and China Construction Bank.
• Average discount rates remained low (<3% on OPB), but shorter overdue periods (avg 3 years) drove higher conversion rates.

Judicial Auctions

• Nationwide 1st auction cases increased 32% YoY (615,009 cases), but conversion rates declined across asset types.
• Leading provinces (Guangdong, Zhejiang) showed growth, though buyer caution suppressed pricing (avg discount 48% of principal).