Economic Overview - In the first three quarters of 2025, China's GDP grew by 5.2%, an increase of 0.4 percentage points compared to the same period in 2024[67] - The real estate sector is under significant pressure, with a projected debt repayment of 5,257 billion yuan in 2025, leading to an increase in non-performing loans in the banking sector[69] Non-Performing Asset Market Dynamics - In 2024, China disposed of non-performing assets totaling 3.8 trillion yuan, marking the highest annual figure to date, with an estimated stock of non-performing assets reaching approximately 8.5 trillion yuan by the end of 2024[14] - The supply of non-performing assets is expected to grow due to ongoing challenges in the real estate market, local government debt, and the restructuring of small financial institutions[20] Asset Management Companies Performance - By the end of 2024, the total assets of four major asset management companies reached 4.51 trillion yuan, with a year-on-year increase of 2.84%[27] - The operating income of these companies was 248.8 billion yuan in 2024, reflecting a 4.10% increase from the previous year, while net profit rose by 34.97% to 15.5 billion yuan[27] Regulatory Environment - Recent regulatory measures aim to enhance the management of non-performing assets and promote high-quality development within the industry, including the issuance of guidelines for asset management companies[36] - The government has introduced policies to support the restructuring of small financial institutions and improve the efficiency of non-performing asset disposal[37] Challenges and Opportunities - The non-performing asset management industry is transitioning from "risk disposal" to "value reconstruction," necessitating a focus on maximizing asset value through innovative management strategies[24] - The market is witnessing a diversification of asset types and disposal methods, creating new opportunities for asset management companies[24]

Core Viewpoint - The report by JLL highlights that China's non-performing assets (NPAs) are at a pivotal point for value reconstruction, indicating significant investment potential in this sector [1] Industry Overview - The National Financial Regulatory Administration estimates that banks will dispose of over 3 trillion yuan in non-performing assets in 2024 [1] - According to the 2025 China Financial Non-Performing Asset Market Survey Report by Dongfang Asset, the NPA market is expected to show a trend of "stable growth in total volume and continuous structural adjustment" [1] - National financial asset management companies are expected to lead local debt disposal under supportive debt reduction policies, with a projected 30% increase in the volume of NPAs they handle by 2025 [1] Investment Opportunities - The NPA sector is not merely "negative assets" but may represent undervalued value carriers, suggesting a need to broaden the definition of NPAs and focus on "non-negative assets" [1] - The restructuring of debts and the separation of debt and equity from underlying assets can reveal valuable components within NPAs, making them worthy of investment [2] - Innovative approaches such as NPA funds and asset securitization are gaining traction, presenting new opportunities for investment compared to traditional methods like debt-to-equity swaps and principal and interest recovery [2][3] Market Dynamics - The NPA industry exhibits a notable characteristic of "counter-cyclical acquisition and pro-cyclical sale," where the best time to acquire is during market downturns when asset prices are undervalued, and the optimal time to sell is during economic recovery when asset prices rise [3][4] - Emerging investment groups, such as family offices, are increasingly entering the NPA investment space, indicating a growing interest in this sector [4] Future Directions - JLL plans to further explore the classification and valuation strategies of NPAs, as well as disposal strategies, in collaboration with market participants to uncover the potential value of NPAs [4]

Core Viewpoint - The article promotes a series of professional development courses organized by First Financial and Shanghai Jiao Tong University, focusing on career advancement and industry insights through expert-led sessions [1][2]. Group 1: Event Details - The courses will take place from May 8 to May 10, 2025, in Beijing, Shanghai, and Shenzhen, with limited seats available [3]. - The first session on May 8 in Beijing will discuss the value reconstruction of non-performing assets in a counter-cyclical opportunity context [5]. - The second session on May 9 in Shanghai will focus on mastering "defining future" capabilities through hard technology and capital reconstruction [9][11]. - The final session on May 10 in Shenzhen will address breaking through the career ceiling for engineers, particularly in the new energy and low-altitude economy sectors [19]. Group 2: Featured Speakers - Notable speakers include Liu Dayong, Deputy Branch Manager of China Everbright Bank, and a representative from a central enterprise AMC for the Beijing session [8]. - The Shanghai session will feature Yang Yanhua, Chairman of Yueyi Capital, Hu Zhejun, General Manager of Shangqi Capital, and Wu Yichen, Technical Head of Haicai Feiwu Intelligent Technology [13][15][18]. - The Shenzhen session will include Shi Wei, Chairman of Liontail Intelligent, and Lou Tengfei, Head of Collaborative Innovation at Jiangsu Intelligent Unmanned Equipment Industry Innovation Center [21][23].