With regard to the disposal of non-performing assets, the disposal of non-performing assets refers to the activities of comprehensively using all means and methods to realize and enhance the value of assets within the scope permitted by laws and regulations. The scope of asset disposal can be divided into: equity assets, creditor's rights assets and physical assets; Asset disposal methods are divided into ultimate disposal and phased disposal according to asset realization. The final disposal mainly includes bankruptcy liquidation, auction, bidding, agreement transfer and discount realization. Phased disposal mainly includes debt-to-equity swap, debt restructuring, litigation and litigation preservation, debt-to-equity swap, asset replacement, enterprise restructuring, physical asset reinvestment improvement, physical asset leasing, asset restructuring, and physical asset investment.

Legal objectivity:

Article 7 of the Due Diligence Guidelines for the Disposal of Non-performing Financial Assets, if the staff of non-performing financial assets have direct or indirect interests with the stripper, the debtor, the guarantor, the shareholding enterprise, the asset transferee (the trustee) and the entrusted intermediary, or are found to be directly responsible for the formation of non-performing financial assets, they shall withdraw from the disposal of non-performing financial assets. The staff of non-performing financial assets shall not engage in asset evaluation at the same time (pricing shall be included in asset disposal and related approval).