Banks have introduced new changes in the disclosure of personal non-performing loan (NPL) asset transfers.

Since November, multiple banks have omitted key data—such as starting bids, write-off statuses, and average outstanding principal and interest per borrower—from bulk NPL transfer announcements published on the China Banking and Credit Registration Center (Yindeng Center).

"These changes emerged around October 29, but the data remains accessible to AMCs via corporate accounts—only 'write-off statuses' are now completely hidden," an AMC professional revealed.

A comparison of transfer announcements before and after October 29 shows that, alongside streamlined disclosures, transaction processes have accelerated significantly. Banks have notably shortened payment deadlines for buyers, reflecting a stronger demand for quick capital recovery.

The Yindeng Center attributed the reduced disclosures to requests from asset sellers.

**Key Auction Parameters No Longer Public** Recent announcements exclude auxiliary valuation metrics (e.g., maximum outstanding balances per borrower, weighted average credit lines) and bidding parameters (starting prices, bid increments). Documents also now carry "no unauthorized redistribution" watermarks.

This shift prevents the public from estimating discount rates for asset packages. However, AMCs can still access starting bids and other critical data via corporate accounts.

"Only write-off details are fully withheld. While inconvenient, this doesn’t significantly hinder operations," an industry insider noted. Write-offs indicate lower recovery prospects, often correlating with steeper discounts—though standards vary by institution.

**Market Evolution and Rationale** Launched in 2021, China’s pilot program for bulk personal NPL transfers initially involved six state-owned banks and 12 joint-stock banks before expanding to include leading city/rural commercial banks. Previously, the Yindeng Center disclosed starting bids, enabling discount rate calculations.

Industry expert Peng Cheng cited multiple reasons for the opacity: 1. The pilot isn’t a public market; early transparency aided institutional learning, but now, with stable operations, limiting public data is logical. 2. As the second pilot phase nears expiration, potential collateralized asset transfers in 2025 could spark misinterpretations due to NPLs’ unique nature.

**Tighter Transaction Terms** Beyond reduced disclosures, banks have accelerated timelines. For example: - A state-owned bank cut payment and agreement-signing periods from 5 to 3 and 2 working days, respectively. - A city commercial bank slashed payment deadlines from 20 to 5 working days.

While some banks maintained existing terms (e.g., 3-day payment/agreement cycles), the trend suggests streamlined processes.

Peng Cheng views this as optimization: "With NPL transfer volumes growing—some institutions have issued over 100 batches—shorter cycles speed up disposals."

**Market Expansion and Impact** Yindeng Center data shows Q1 2024 bulk personal NPL transfers surged 761.4% YoY to ¥37.04 billion, with consumer loans dominating (¥26.82 billion, >70%).

By offloading illiquid, capital-intensive NPLs, banks reduce bad loan ratios and improve asset structures. The CBIRC reported H1 2024 disposals hit ¥1.5 trillion (+¥123.6 billion YoY), driving Q2 NPL balances down to ¥3.4 trillion (¥24 billion lower QoQ) and the ratio to 1.49% (-0.02 pp QoQ).