As the year-end approaches, multiple commercial banks have intensified the transfer of non-performing assets through the Banking Credit Asset Registration and Transfer Center (referred to as "Credit Center").
Among them, Hua Xia Bank Co.,Limited's (600015) one-time offering of a credit card non-performing asset package exceeding 10 billion yuan has drawn significant market attention. From December 3 to 4, the bank listed eight credit card non-performing asset packages, with total unpaid principal and interest amounting to 11.3 billion yuan, setting a new high for single-institution disposal scale in the industry and becoming a focal point in the market.
Simultaneously, the industry's disposal landscape is undergoing subtle changes. The traditional model of centralized disposal by headquarters is gradually being replaced, with "branch-led packaging" emerging as a new trend in year-end non-performing asset transfers. From state-owned banks to joint-stock banks, financial institutions are increasingly initiating disposal projects through their branches.
Multiple industry insiders noted that "driven by both policy support and market demand, the efficiency of non-performing asset disposal is continuously improving."
From December 3 to 4, Hua Xia Bank's credit card center released eight non-performing loan packages (Series 13-20), all consisting of credit card overdraft non-performing loans, with a total unpaid principal and interest of 11.3 billion yuan—the largest single-institution disposal volume in the industry recently.
These eight packages vary in loan count, ranging from 21,738 to 37,202 loans, with significant differences in unpaid principal and interest amounts. The largest package, Series 13, includes 37,202 loans totaling 2.032 billion yuan, while the smallest, Series 20, involves 21,738 loans worth 990 million yuan.
Hua Xia Bank's large-scale transfer of credit card non-performing assets appears necessary given its asset quality data. As of the end of June 2025, the bank's personal non-performing loan balance stood at 16.235 billion yuan. The 10 billion yuan credit card non-performing assets being transferred account for 69.53% of this balance.
Notably, Hua Xia Bank's 2025 interim report revealed that while personal loans accounted for 29.63% of total loans, personal non-performing loans made up 42% of the bank's total non-performing loans, highlighting the risk management pressure in personal credit operations.
The bank attributed the rise in personal non-performing loan ratios to external risk factors, including reduced income levels and repayment capacity among some borrowers.
The credit card non-performing asset packages share common characteristics: extended delinquency periods (typically 4-6 years) and minimal litigation involvement. Hua Xia Bank disclosed that these assets will be transferred via online public bidding, with registration deadlines set for December 11 or 12 and bidding scheduled for December 15 and 16.
While the bank has not disclosed starting prices, industry references suggest an average discount rate of approximately 4.4% for credit card overdraft non-performing loans. Based on this, individual package final transaction prices are likely to fall between 46 million and 90 million yuan.
The selection of buyers for large asset packages is closely watched, as such disposals require substantial institutional capacity.
Industry sources revealed that asset management firms such as China Merchants Ping An, China Resources Yukang, Jiangxi Ruijing, and Changsha Xiangjiang have previously acquired Hua Xia Bank's non-performing assets through public channels, demonstrating relevant experience and capability.
Peng Cheng, a senior research advisor, noted that regional asset management companies have been the primary acquirers of such non-performing assets in recent years.
This concentrated disposal activity also reflects widespread risk concerns in commercial banks' credit card businesses.
Dong Ximiao, Chief Researcher at Zhaolian and Deputy Director of the Shanghai Finance and Development Laboratory, pointed out that many banks face issues like duplicate card issuance, excessive credit lines, and unclear fee structures during credit card business expansion—practices that not only waste financial resources but also create significant credit risks.
"Since 2020, external factors such as industry fluctuations have reduced repayment capacity for certain groups, accelerating the exposure of credit card risks and leading to an overall upward trend in risk levels," Dong added. He emphasized that banks must strengthen management in key areas such as business models, credit approval, fee collection, and external partnerships to enhance comprehensive risk management in credit card operations.
As year-end approaches, commercial banks have entered a peak period for non-performing asset disposal. Since December, the Credit Center has published over 100 non-performing loan transfer announcements, indicating a clear acceleration in disposal activity.
On December 5 alone, multiple institutions—including Postal Savings Bank of China, China Construction Bank, China Everbright Bank, China CITIC Bank, Bank of Communications, and Agricultural Bank of China—collectively announced 28 asset package transfers, with individual package values ranging from 100 million to 220 million yuan.
A notable trend in this year's year-end non-performing asset disposal market is the prominence of "branch-led" initiatives.
Most of these transfer projects are directly initiated by bank branches. Participants include state-owned bank branches such as China Construction Bank's Hunan Branch and Agricultural Bank of China's Sichuan Branch, as well as joint-stock bank branches like Bank of Communications' Dalian Branch and China Everbright Bank's Fuzhou Branch.
This trend is supported by clear policy guidance. In 2023, the Credit Center's "Frequently Asked Questions on Non-Performing Loan Transfer Business" explicitly permitted branches to act as transferors with headquarters' authorization, providing a policy basis for branch-led transfers.
Encouraged by these policies, multiple banks have actively adopted branch-led disposal models. For instance, China Construction Bank has frequently organized non-performing asset transfers through branches in recent years. On December 5, its Guangdong, Chongqing, Hunan, and Guizhou branches simultaneously announced transfer projects involving seven asset packages, covering personal consumption and business loans with total values between 60 million and 150 million yuan.
"The shift from headquarters-led to branch-led bulk transfers of personal non-performing loans indicates growing market acceptance of this disposal method," Peng Cheng observed, noting that this change reflects the increasing marketization of the non-performing asset disposal sector.
"Branch-led disposals significantly improve efficiency," Peng explained, linking this to banks' management systems. While some joint-stock banks with centralized non-performing asset management may organize transfers at headquarters, most banks' varied regional credit approval policies and processes make branch-led transfers more suitable. Credit card businesses, however, follow nationwide unified management and thus adopt centralized packaging.
Dong Ximiao also acknowledged the efficiency advantages of branch-led disposals. For banks with substantial non-performing assets at branch levels, direct branch involvement can enhance transfer and disposal efficiency. "Branches have better knowledge of local market conditions and asset specifics, enabling accurate valuation, reasonable pricing, and improved transaction success rates and processing efficiency," he said.
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