2017-08-30 Introduction In the past three years, local asset management companies (AMCs for short) have basically been approved according to the logic of one per province, and have basically formed a Chinese-style "bad bank" pattern of "four major AMCs + local and provincial AMCs". As early as 2013

In 2013, the China Banking Regulatory Commission issued the "Notice on Relevant Issues Concerning the Qualification Recognition Conditions for Local Asset Management Companies to Carry out Bulk Acquisition and Disposal Business of Non-performing Assets of Financial Enterprises" (hereinafter referred to as "Yinjianfa [2013] No. 45"), and the People's Governments of all provinces, autonomous regions and municipalities directly under the Central Government

In principle, only one local asset management company can be established or authorized to participate in the bulk acquisition and disposal of non-performing assets of financial enterprises within the province (autonomous region, municipality directly under the Central Government).

In the past three years, local asset management companies (AMCs for short) have been approved basically in accordance with the logic of one per province, and a Chinese-style "bad bank" pattern of "four major AMCs + local and provincial AMCs" has been basically formed.

However, with the surge in non-performing assets in the banking system since last year, a change is quietly taking place. In addition to provincial AMCs, prefecture-level AMCs have also been born recently. As a result, there are currently two licensed banks in many provinces.

AMC agency.

Some insiders analyze that as the issuance of provincial AMC licenses is coming to an end, prefecture-level AMC licenses may become the main force in being approved in the future. "According to our calculations, an AMC license can be worth up to 1 billion yuan. This is not

It’s hard to understand why all kinds of capital are entering,” said the industry insider.

The number of local "bad debt banks" increased to 28. On July 15, Guangxi Financial Holdings Asset Management Company was officially unveiled. As a local AMC in Guangxi, the goal is to promote banks to speed up the disposal of non-performing assets and effectively prevent various local financial risks. Guangxi Financial Holdings Assets

Guangxi Financial Investment Group, the investor, said that in the next five years, Financial Holdings Assets is expected to acquire and dispose of non-performing assets worth 30 billion yuan.

On the 4th of this month, Haide Holdings announced that it had obtained the "Approval from the People's Government of the Tibet Autonomous Region to Establish Haide Asset Management Co., Ltd." (Zangzhenghan [2016] No. 97). The approval included permission to establish Haide Asset Management Co., Ltd.

Asset Management Co., Ltd. has determined the business scope of Haide Asset Management acquisition, entrusted operation of non-performing assets, etc., and obtained the local AMC management license approved by the Ministry of Finance and the China Banking Regulatory Commission.

This also means that the Tibet AMC license has been implemented.

In addition, Chongqing Yukang Asset Management Co., Ltd. has also been established recently. This company is used to undertake the asset restructuring and debt restructuring functions of Chongqing's previously approved local AMC Chongqing Yufu Group.

According to statistics, so far, the China Banking Regulatory Commission has approved 24 local provincial-level licensed AMCs. The specific areas include Shanghai, Guangdong, Jiangsu, Zhejiang, and Anhui in the first batch; Chongqing, Beijing, Liaoning, Fujian, and Tianjin in the second batch

; The third batch includes Guangxi, Shandong, Hubei, Jilin, and Ningxia; the fourth batch includes Henan, Inner Mongolia, Sichuan, Hunan, and Shaanxi; and subsequent Jiangxi, Shanxi, Hebei, Tibet, and other places.

"As far as I know, the remaining regions that have not yet established local AMCs are stepping up preparations. It is estimated that by the end of the third quarter, local AMCs will be deployed in various provinces." said the above-mentioned industry insider.

Statistics from this newspaper show that local AMCs have not yet been established in Xinjiang, Qinghai, Gansu, Yunnan, Guizhou, Hainan, Heilongjiang and other places.

In addition to local provincial AMCs, prefecture-level cities are also actively applying for AMC licenses. Since the second half of last year, four prefecture-level AMCs have been approved for establishment, including Wenzhou in Zhejiang Province, Qingdao in Shandong Province, Xiamen in Fujian Province, and Suzhou in Jiangsu Province.

Previously, these four provinces had already established provincial-level asset management companies.

“There are a number of prefecture-level cities that are applying for AMC licenses, such as Guangzhou and Shenzhen in Guangdong Province, but I predict that the scale of prefecture-level AMCs will not be very large. The pattern of two AMCs in the same province will generally only appear in bad companies.

High-risk areas, such as Wenzhou in Zhejiang Province in the Yangtze River Delta, are where bank NPLs are concentrated, and Jiangsu Province is concentrating on handling NPLs in Wuxi Suntech," said the above-mentioned industry insider.

This newspaper also learned that although it is a prefecture-level AMC, in terms of business scope, it has the same "treatment" as a provincial-level AMC, that is, it can jump out of the city and carry out the acquisition and disposal of non-performing assets across the province.

For provincial AMCs, this obviously adds another category of competitors in addition to the Big Four.

"In fact, the Big Four have always been conducting business in local areas, but in comparison, their business advantages are not as good as those of local AMCs. Especially when dealing with non-performing local state-owned assets, local governments prefer to bring local AMCs with state-owned assets background to deal with them."

Industry insiders said.

How to resolve the hunger for funds? Although local AMCs have obtained the same licenses as the four major asset management companies, the China Banking Regulatory Commission has also set harsh conditions for them, that is, "the non-performing assets purchased by real estate asset management companies should undergo debt restructuring."

It shall be disposed of in a certain manner and shall not be transferred externally.”

In other words, compared with the four major AMCs, local AMCs can only "get in but not get out". "They just cannot wholesale and resell directly." said Wu Ge, managing partner of Defu Asset Management.