Hua Er Jie Jian Wen·2026-01-07 09:49Core Viewpoint - Zhengzhou Bank is transitioning from a reliance on real estate to focusing on county-level markets, seeking new growth opportunities amid rising non-performing loans in the real estate sector [1][10]. Real Estate Issues - Zhengzhou Bank won a court ruling regarding an 11 billion yuan loan to Jinwei Industrial, but the defendant's lack of assets raises concerns about actual recovery [2][3]. - The bank's real estate non-performing loan ratio surged from 0.15% in 2019 to 9.75% by mid-2025, indicating a significant deterioration in asset quality [7]. - The bank has faced multiple large-scale real estate bad debts, with 22 billion yuan in principal exceeding its net profit from the previous year [5]. Strategic Shift - To address asset quality, Zhengzhou Bank is reducing its real estate loan ratio from 13.62% in 2019 to around 5% [8]. - The bank has initiated a "de-real estate" transformation, including transferring 15 billion yuan in assets at a discount to manage existing risks [8][9]. - By the end of Q3 2025, the bank's non-performing loan ratio improved to 1.76%, outperforming the average for city commercial banks [9]. County-Level Focus - Zhengzhou Bank is shifting its focus to county-level markets, which exhibit stronger anti-cyclical capabilities compared to urban economies [10]. - The bank's strategy has evolved through three phases, with a significant shift in 2024 towards viewing county economies as key growth areas [11][12]. - The bank's county-level business now operates on a "retail + corporate" dual-drive model, enhancing its service offerings [14]. Future Outlook - The bank's credit resources are increasingly being redirected from real estate to county-level markets, with a nearly 70 billion yuan reduction in real estate loans by Q3 2025 [17]. - However, challenges remain, including rising non-performing loans and increased competition from local rural commercial banks [19][20].