Core Viewpoint - The continuous decline in real estate prices has led to a persistent drop in the value of real estate as a major asset class, resulting in increased debt risks for some companies and the formation of non-performing assets [1][4] Group 1: Non-Performing Assets Overview - From 2020 to 2024, the cumulative scale of non-performing asset handling exceeds 3 trillion yuan annually [1] - The formation of non-performing assets affects the asset quality of financial institutions and poses threats to their stable operation and sustainable development [1] - The market for non-performing asset transactions has become increasingly active, indicating a potential "small windfall" in this sector [1] Group 2: Causes and Opportunities - The formation of non-performing assets can be traced back to the misalignment between short-term funding needs of enterprises and the macroeconomic cycle [5] - The increase in corporate debt defaults may further expand the scale of non-performing assets for banks and other financial institutions, presenting opportunities for certain investors [4][5] Group 3: Diverse Ownership and Market Trends - The owners of non-performing assets are becoming more diversified, including banks, trusts, asset management companies (AMCs), and real estate companies facing debt risks [4] - The market has seen a rational and mature understanding of non-performing assets, leading to a reduction in the discount rates for transactions since last year [6] Group 4: Asset Types and Valuation - Shopping centers and office buildings in first and second-tier cities are highly valued in non-performing asset transactions due to their stable cash flows [7] - Long-term rental apartments are also active in the transaction market, with asset disposal primarily focused on first and second-tier cities, while third-tier cities face higher risk assessment requirements [8] - Key evaluation metrics include the comprehensive realization rate, stability of current cash flows, and operational capabilities of the assets [8][9]