Core Viewpoint - Increasing number of small and medium-sized banks are accelerating the sale of risk assets as they face ongoing asset quality pressures, particularly highlighted by recent announcements from Bohai Bank and Guangzhou Rural Commercial Bank [1][3][6]. Group 1: Asset Sales - Bohai Bank plans to publicly transfer 69.833 billion yuan in debt assets, with a minimum price set at 48.883 billion yuan, reflecting a 30% discount on total debt [2]. - Guangzhou Rural Commercial Bank is set to transfer 18.928 billion yuan in credit assets, with a minimum price of 12.2 billion yuan, representing a 35% discount [2]. - Over the past year, Bohai Bank has disposed of over 100 billion yuan in problematic assets through multiple sales [2]. Group 2: Asset Quality and Financial Impact - As of the end of Q2, Bohai Bank's non-performing loan ratio stood at 1.81%, which is 0.59 percentage points higher than the average for joint-stock banks, indicating poor asset quality [3]. - The successful sale of debt assets could yield a positive financial impact of approximately 573 million yuan for Bohai Bank by the end of 2024 [5]. - Guangzhou Rural Commercial Bank's non-performing loan ratio was 1.98%, which, while better than the average for rural commercial banks, still places it in the lower tier among H-share listed banks [6]. Group 3: Strategic Management - The asset packages being sold primarily consist of long-term assets with over five years of aging, which are characterized by high capital occupation and poor liquidity [4]. - Both banks aim to improve their capital adequacy ratios and overall competitiveness by offloading these risk assets, despite the immediate profit erosion from discounted sales [6][7]. - The proactive approach to asset management reflects a shift from passive acceptance of losses to active risk management strategies among small and medium-sized banks [6][7].
百亿资产甩卖频现，中小银行加速“断尾求生”