Core Viewpoint - China Minsheng Bank's Chongqing branch is auctioning a debt related to the Evergrande Group, with a total debt amount of 9.92 billion yuan and a starting price of approximately 1.48 billion yuan, indicating a significant discount of around "1.5 times" [1][6]. Group 1: Debt Details - The core asset involved in the transfer is the debt of Chongqing Yongli Real Estate Co., Ltd., with a principal amount of 706 million yuan, accrued interest and penalties of 229 million yuan, and additional fees totaling 4.9 million yuan, bringing the total debt to 960 million yuan [3][5]. - The debt is guaranteed by Evergrande Group, with collateral consisting of 7,038 parking spaces and 25,270 square meters of commercial property, distributed across five administrative regions [3][5]. Group 2: Auction Participation - The auction is scheduled to start on December 22 and is limited to financial asset management companies or local asset management companies in Chongqing that have the qualification to acquire non-performing financial assets [1][6]. - The main qualified institutions in Chongqing include China Resources Yikang and Chongqing Fucheng [1]. Group 3: Recent Trends - This action by Minsheng Bank's Chongqing branch is part of a broader trend, as the Shenzhen branch recently disposed of a debt related to Evergrande with a total amount of 2.36 billion yuan, sold at a low price of approximately 319 million yuan, reflecting a similar discount of around "1.35 times" [6][8]. Group 4: Company Background - Chongqing Yongli Real Estate Co., Ltd. was established in 2013 and is a wholly-owned subsidiary of Evergrande Group. The legal representative, Peng Shanrong, is currently listed as a dishonest executor and is restricted from high consumption due to multiple disputes [5].

Core Insights - Lanzhou Rural Commercial Bank is auctioning nearly 200 properties on JD Asset Platform, with prices ranging from tens of thousands to billions, primarily as debt recovery assets [2][3] - Other banks, including Agricultural Bank, Construction Bank, and several city commercial banks, are also engaging in direct property sales, with smaller banks showing larger volumes [2][5] - The properties are mainly collateral for loans that borrowers failed to repay, leading to non-performing loans, and banks are establishing departments to manage these assets [2][7] Property Auction Details - Among the properties listed by Lanzhou Rural Commercial Bank, nine have starting prices exceeding 100 million, with the highest being 550 million for 471 commercial units in Tianshui [3] - A significant portion of the properties, 156 units, are located in the Yucai Yipin community in Liaoning, with starting prices below 200,000, and the lowest starting at around 80,000 [4] - The bank has a total of 720 properties listed, with 630 newly listed in 2025, including over 140 residential units and 180 shops in Hainan [4] Comparison with Other Banks - Lanzhou Bank has listed 1,130 properties for sale in 2024 and 1,779 in 2025, while Agricultural Bank has 649 properties listed since 2025 [4][5] - Other banks like Jilin Bank and Tianjin Bank have also listed significant numbers of properties, with Jilin Bank at 2,099 and Tianjin Bank at 1,227 [5] Non-Performing Loan Management - The traditional methods for banks to handle non-performing loans include selling the debt at a discount or judicial auctions, but direct property sales can maximize recovery rates [7][9] - Many of the properties are tied to corporate loans, requiring collateral from businesses or individuals, and the process from default to sale can take one to three years [9] Market Dynamics - The properties listed by banks often have lower prices than market rates, making them attractive to buyers, although the transaction rates remain low [11][12] - For example, properties in Yucai Yipin community are priced at 2,300 per square meter, significantly lower than the market price of 33,000 to 46,000 per square meter [11] Risk and Buyer Perception - Direct sales from banks are perceived to have lower risks compared to judicial auction properties, as banks have a more robust risk management system [12] - However, there is a gap in awareness among potential buyers, particularly in lower-tier cities, regarding the availability of these properties [13][14]

Core Viewpoint - Lanzhou Rural Commercial Bank is auctioning nearly 200 properties on JD Asset Platform, primarily as debt recovery assets, with prices ranging from tens of thousands to billions [2][4] Group 1: Property Sales Overview - The properties for sale include residential, commercial, and office spaces, with 9 properties starting at over 100 million yuan, the highest being a commercial property in Tianshui priced at 550 million yuan [4] - Among the 200 properties, 156 are located in the Yucai Yipin community in Liaoning, with starting prices below 200,000 yuan, and the lowest starting at around 80,000 yuan [4] - The bank has a total of 720 properties listed, with 630 newly listed in 2025, including over 140 residential units and 180 shops in Hainan [4][5] Group 2: Bad Debt Recovery - Properties sold by banks are primarily collateral for loans that borrowers failed to repay, leading to bad debts [3][7] - The current market environment makes it challenging to recover bad debts, with high discount rates and low recovery rates [3] - Banks have established departments for bad asset disposal to manage existing bad debts and seek investment opportunities in the market [3][6] Group 3: Market Dynamics - The sale of bank-owned properties is more prevalent among city commercial banks, rural commercial banks, and rural credit cooperatives compared to larger banks [2][5] - The number of properties listed for sale by various banks shows significant variation, with rural credit cooperatives leading in volume [5][6] - The traditional methods of disposing of bad debts include selling the debt or judicial auctions, but direct property sales can maximize recovery rates [6][8] Group 4: Property Pricing and Market Appeal - The pricing of bank-owned properties is often lower than market rates, making them attractive to buyers, as seen in the Yucai Yipin community where prices are significantly below market value [10][11] - Despite competitive pricing, the transaction rates for these properties are generally low, with some properties experiencing multiple failed auctions [9][11] - The appeal of certain property types, such as commercial spaces in busy areas and independent office buildings, tends to be higher due to stable rental yields [9][12] Group 5: Challenges and Recommendations - There exists an information gap between banks and potential buyers, particularly in lower-tier cities, which hinders effective sales [12] - Banks are encouraged to collaborate with local real estate agencies to improve visibility and attract buyers to their direct sales [12]

Core Viewpoint - The "Evergrande system" has put 12 companies' non-performing debts on the market, totaling approximately 11.3 billion yuan, with assets spread across major cities and various project types [1][3]. Group 1: Non-Performing Debts - The total amount of non-performing debts from the 12 companies is about 11.3 billion yuan, with all debts held by China Great Wall Asset Management Co., Ltd. Beijing Branch [1][3]. - The projects involved are located in cities such as Beijing, Tianjin, Nanchang, and Chengdu, covering residential, commercial, and cultural tourism sectors [1][3]. Group 2: Specific Debt Examples - In Beijing, a debt from Beijing Hengfangxing Real Estate Co., Ltd. totals 1.387 billion yuan, with principal at 1.186 billion yuan and interest exceeding 200 million yuan [5]. - In Tianjin, one debt from Chengdu Jinjingjiang Real Estate Development Co., Ltd. amounts to 1.675 billion yuan, with principal at 1.48 billion yuan and interest at 195 million yuan [5]. - Another Tianjin debt from Tianjin Shanshui City Investment Co., Ltd. totals 2.477 billion yuan, with principal at 1.366 billion yuan and interest at approximately 59 million yuan [5]. - In Nanchang, a debt from Nanchang Hengfu Real Estate Co., Ltd. totals 604 million yuan, with principal at 510 million yuan and interest at approximately 9.39 million yuan [6]. Group 3: Liquidation Developments - On June 9, China Evergrande announced the appointment of joint liquidators for its subsidiary CEG Holdings, following a court order from the Hong Kong High Court [8]. - The liquidation process aims to preserve the group's assets for the benefit of creditors and other stakeholders [8][11]. - The Hong Kong High Court has ruled that only statutory creditors can participate in the liquidation process, excluding economic interest holders [11].