Non-performing Asset Monthly Auction Transfers Drop 50% to 13.9 Billion, Consumer Finance Institutions Maintain Momentum, Two Sessions Emphasize Risk Prevention

Caixin March 13 News (Editor Yang Bin, Intern Liang Zefeng)
Following the “early move” by consumer finance companies (referred to as “consumption finance companies”) in January to transfer non-performing assets, the market size of non-performing asset transfers decreased month-on-month in February.

Data from the Credit Asset Registration and Circulation Center of the banking industry (hereinafter referred to as “YinDeng Center”) shows that the total amount of non-performing loans listed for transfer in February was 13.93 billion yuan, down 49.39% from 27.52 billion yuan in the same period last year, and a 12.36% decrease from 15.89 billion yuan in January.

Caixin has observed that the participants in the non-performing asset transfer market are becoming more diverse and balanced, including joint-stock banks like Ping An Bank and China Construction Bank, state-owned large banks, as well as licensed consumer finance companies such as Bank of China Consumer Finance and Ant Consumer Finance, the latter of which continues to grow strongly and has become an important supplier in the non-performing asset market.

In February, the scale of non-performing asset transfers approached 140 billion yuan, down 49.39% month-on-month, with consumer finance institutions showing strong momentum

According to Caixin statistics, in February, 16 institutions listed 62 non-performing loan portfolios. Among them, Ping An Bank led with a listing scale of 2.815 billion yuan, followed by Jiangsu Bank with 2.362 billion yuan. The listed amounts for China Construction Bank, Bank of China Consumer Finance, Chongqing Ant Consumer Finance, and Bank of Communications also exceeded 1 billion yuan each.

(Data source: YinDeng Center, compiled by Caixin)

Looking at the listing entities, the participation in the non-performing asset transfer market is becoming more diverse and balanced, including joint-stock banks like Ping An Bank and China Construction Bank, as well as state-owned large banks, and licensed consumer finance companies such as Bank of China Consumer Finance and Ant Consumer Finance.

Notably, consumer finance companies have continued their strong momentum since the beginning of the year and have become a key source of non-performing assets. Data shows that in February, five licensed consumer finance institutions—Bank of China Consumer Finance, Ant Consumer Finance, Nanyin Faba Finance, Hubei Consumer Finance, and Xiaomi Consumer Finance in Chongqing—listed a total of 3.737 billion yuan, accounting for 26.83% of the total scale.

Among them, Bank of China Consumer Finance listed five non-performing asset packages on February 12, with an outstanding principal and interest totaling about 1.41 billion yuan. The largest package, the fifth, had an outstanding balance of 486 million yuan, sourced from regions including Guangzhou-Shenzhen, Fujian, Guangxi, Yunnan-Guizhou, and Beijing-Tianjin. The overdue period for the fifth package’s non-performing loans is relatively long, with an average overdue of over 1,000 days, and the ninth package reaching 2,053.70 days.

Guotai Haitong pointed out that in recent years, the scale of individual non-performing loan transfers has increased significantly, with participation from consumer finance companies rising, mainly focusing on personal consumption loans. United Credit further noted that, under the influence of ongoing customer base deepening and accelerated online transformation, traditional models relying on collection and write-offs are no longer sufficient to handle small, dispersed, and weakly collateralized personal non-performing assets. By participating in bulk transfers of personal non-performing loans, consumer finance companies can quickly realize asset liquidity and “remove assets from the market,” effectively alleviating the pressure of non-performing asset disposal.

Cost reduction and burden alleviation, combined with pilot extension, set the tone for risk prevention at the Two Sessions

Policy measures to reduce costs and burdens continue to inject vitality into the market. On January 7, 2026, the YinDeng Center issued a notice on continuing preferential arrangements for non-performing loan transfer fees, clarifying that from January 1, 2026, the listing service fee for non-performing loans will remain temporarily exempted, and transaction service fees will be discounted by 20%.

Meanwhile, the State Financial Supervision and Administration Bureau officially extended the pilot period for non-performing loan transfers to December 31, 2026, on December 29, 2025.

The 2026 Two Sessions continued to emphasize risk prevention in key areas. The “Government Work Report” explicitly called for “prudent disposal of non-performing assets of financial institutions.”

CICC Securities believes that this year’s “Government Work Report” highlights the importance of “early” and “root removal” in handling financial risks, requiring innovation in various methods to dispose of non-performing assets.

Huachuang Securities pointed out that the focus of work in 2026 shifts from “actively preventing risks” to “actively resolving risks.” The key tasks include strengthening risk disposal resources and methods for local small and medium-sized financial institutions, advancing the disposal of high-risk institutions in an orderly manner, and increasing capital replenishment through multiple channels. The emphasis on early and source risk prevention remains central to risk management.