News

Introduction: 

The 3rd Summit Forum on China Economic Development and Legal Regulation & Launch Ceremony of GLGA 2018 China Blue Book of China's Non-performing Assets, with Green Legal Global Alliance (GLGA) as the sponsor and Beijing Docvit Law Firm as the professional support unit, was successfully held on August 3, 2019 in Beijing. This forum is the third GLGA annual forum after the 1st Summit Forum on Financial Capital Market Development and Legal Regulation of GLGA and the 2nd Summit Forum on New Momentum and Legal Regulation of China's Economic Development. 

Over 80 representatives from National Council for Social Security Fund The People's Republic of China, Institute of Finance, Development Research Center of the State Council of the People's Republic of China, Peking University, Tsinghua University, China Orient Asset, China Great Wall Asset, China CINDA Asset, Beijing AMC, Tianjin AMC, Hebei AMC, China Everbright Bank, Postal Savings Bank of China, Huaxia Bank, Industrial Bank Co., Ltd., Bank of Beijing, Bank of Jiangsu, China Beijing Equity Exchange, Chongwa (Macao) Financial Asset Exchange CO., Ltd. as well as other central SOEs, SOEs, financial institutions and investment institutions attended the forum. 

This forum focuses on the benign development of China's non-performing asset industry under the high-quality development of economy. In the forum, Green Legal Global Alliance, Sina Finance and Beijing Docvit Law Firm jointly released the Green Legal Global Alliance (GLGA) Blue Book of China's Non-performing Assets (2018), established GLGA Bankruptcy & Non-Performing Assets Research Center, and formally appointed Mr. CHEN Jianming as the director of the research center. 

Opening Speech 

Mr. LIU Guangchao, founding partner and director of Beijing Docvit Law Firm and director general of Green Legal Global Alliance, hosted the first half of the forum. Mr. WANG Zhongmin, former vice president of the National Council for Social Security Fund The People's Republic of China, delivered an opening speech on "Dual Logic of Market Clearing". He put forward the interweaving of two mechanisms and two kinds of logic, thinking that both the combinational logic of SPV and the financial scene of the front end could be used. 

Keynote Speech 

Ms. ZHANG Chenghui, former director of the Institute of Finance, Development Research Center of the State Council of the People's Republic of China, delivered a keynote speech titled Market-oriented Disposal of Non-performing Assets. She reviewed the process of divestiture of non-performing assets by the four major state-owned banks, and thought that China is now ushering in the second wave of financial non-performing assets. However, this time, the problem of non-performing assets mainly occurs to small and medium-sized commercial banks instead of state-owned banks, and the risk of non-bank financial institutions and non-SEOs is increasing. 

HONG Yanrong, associate professor of Peking University Law School, delivered a speech on the issue of "securitization of non-performing assets of commercial banks". Prof. HONG expounded the advantages of non-performing asset securitization and the characteristics of its practice in China, and examined the investment in non-performing asset securitization from the perspective of risk, information flow, capital flow and equity flow. 

Ms. YANG Fang, CFO of New Hope Group, delivered a speech titled Thinking of Corporate Investors on Participating in the Non-performing Asset Market. Ms. YANG said in her speech that the essence of resolving non-performing assets is time for space. The formation of non-performing assets was caused by unwise credit, which led to the emergence of companies that could not repay their debts, which ultimately had to be resolved by the system and mechanism of debt restructuring. 

Mr. DONG Yuping, deputy general manager of Strategic Development Planning Department (Research Institute) of China Orient Asset Management Co., Ltd., expressed his views on the current market of non-performing assets and how to resolve non-performing assets. Mr. DONG believes that there is a promising market for defusing financial risks and disposing non-performing assets, and the role of market institutions led by four major AMCs should be given full play to resolve non-performing assets as soon as possible, and reduce financial risks to an acceptable level. 

Release and Interpretation of GLGA2018 Blue Book of China's Non-performing Assets 

Subsequently, the forum officially released GLGA2018 Blue Book of China's Non-performing Assets. 

Lawyer SHI Guanghu, senior partner of Beijing Docvit Law Firm, as the core person in charge of the blue book, interpreted GLGA2018 Blue Book of China's Non-performing Assets from the original intention of preparation of the blue book, the in-depth interpretation of the blue book, the evolution of the role of lawyers in the disposal of non-performing assets, and the future development prospects of China's non-performing assets. He expressed that on the basis of in-depth investigation of and research on China's non-performing asset industry, they prepared 2018 Blue Book of China's Non-performing Assets, hoping to be capable of guiding the industry and reflect the innovation of the non-performing asset industry, which is of certain academic and public benefit nature. 

Establishment Ceremony of GLGA Bankruptcy & Non-Performing Assets Research Center and Director Appointment Ceremony 

In the forum, the Green Legal Global Alliance formally established the Bankruptcy & Non-Performing Assets Research Center, and formally appointed Mr. CHEN Jianming as the director of the Bankruptcy & Non-Performing Assets Research Center. 

Later, director CHEN delivered a speech. In his view, the research center should adhere to several principles. The first is to draw on others' successful experience, listen to advice from others, and use them for our own purposes. The second is to advance with the times, to have an insight into the development demands of the market at any time, to grasp the hot and difficult issues of market development at any time to ensure that the research has a definite object in view. The third is to be objective and independent. The research should be in-depth and practical. It should focus on empirical research, be realistic and pragmatic, and objectively provide valuable research results. The fourth is cooperation and sharing. The research center is an open platform, doing its best to attract multi-party cooperation. 

Keynote Speech 

Director CHEN Jianming presided over the second half of the forum. Ms. XUE Ruojun, director of Strategic Customer Department of China CINDA Asset Management Co., Ltd., delivered a keynote speech on the exploration of business mode of non-performing assets under the current regulatory situation. She pointed out that since the second half of 2017, the regulatory authorities have put forward regulatory requirements for the four major AMCs to return to the core business, posing greater challenges in the balance between compliance risk and business risk. 

Mr. ZHANG Weichun, chairman and president of the Executive Committee of Chongwa (Macao) Financial Asset Exchange CO., Ltd., delivered a keynote speech titled Innovation in Overseas Market of Non-performing Assets. Mr. ZHANG Weichun analyzed the new opportunities of the non-performing asset market, and proposed that the non-performing asset market presents the characteristics of diversification of participants, diversification of disposal methods and excellent asset attributes. At the same time, the non-performing asset market faces the opportunities and challenges of marketization, normalization, internationalization and specialization. 

Mr. YANG Tiange, co-president of China Science & Merchants Capital Management Group Co., Ltd., delivered a speech on "problems and difficulties faced by non-performing assets in the process of judicial disposal". He expressed his views from the four aspects of the case filing stage, the undercurrent surge in the investigation and control stage, the confrontational twists and turns in the monetization stage, and the repeated postponement of the allocation link. 

GAO Jiaqing, executive vice president of China Beijing Equity Exchange, delivered a speech on "thinking about the disposal logic and financing upgrading of non-performing assets in trading venues", and interpreted the disposal trend and investment opportunities of non-performing assets, asset disposal and restructuring financing based on the case of China Beijing Equity Exchange. 

DENG Yanbin, executive director of Lakeshore Capital, expressed her views on the development status quo and practice of China's non-performing asset market. She pointed out that there are a lot of uncertainties in the non-performing asset market, and the disposal of non-performing assets is a local business, which requires in-depth analysis of the market to solve the problem of liquidity. 

Mr. YANG Kai, assistant general manager of Hongxin Asset Management Co., Ltd., interpreted the development characteristics of non-performing assets in this round. He said that compared with the first round, the development of this round of non-performing assets shows a distinct style. There are many market chaos in this round of non-performing assets. He believes that non-performing assets are a niche, professional investment field and a high-risk industry. 

Roundtable Forum 

In the forum, participants had in-depth exchanges on "the evolution of non-performing asset investment strategy driven by policy and technology and the diversified extension of investment methods", "obstacles and countermeasures in the acquisition and disposal of financial and non-financial non-performing assets", "the development trend of non-performing assets of banks under the new regulatory situation and the way to resolve the pressure in an innovation manner", "the bottleneck and innovative cooperation mode of non-performing asset investment development of AMC and AIC", "win-win cooperation between international capital and local institutions" and other topics. 

Closing Speech 

Mr. LIU Guangchao, founding partner and director of Beijing Docvit Law Firm and director general of Green Legal Global Alliance, gave a closing speech. Lawyer LIU Guangchao said that Sina, as the leader of new media industry, records and advances the development of the times. Docvit and Sina will continue to base on the trend of the times, gather cross-discipline forces and promote the green and healthy development of the industry. Meanwhile, he proposed that Beijing Docvit Law Firm, as a professional support unit, will continue to conduct in-depth research on the non-performing asset industry, private equity industry, insurance industry, construction engineering industry and other industries from a legal perspective, and constantly enhance the quality of industrial legal services, so as to make positive exploration for the healthy development of the industry.