Core Viewpoint - The introduction of the "Interim Measures for the Supervision and Administration of Local Asset Management Companies" fills a regulatory gap at the national level, aiming to enhance the supervision of local AMCs and promote stable and compliant operations [1][2]. Regulatory Framework - The new measures clarify the division of regulatory responsibilities, emphasizing that provincial financial management institutions are responsible for supervising local AMCs and managing risks within their regions [3]. - The Financial Regulatory Bureau is tasked with formulating regulatory rules for local AMCs and providing guidance to provincial financial management institutions [3]. Business Operations - The measures impose strict limitations on cross-regional operations, requiring local AMCs to primarily conduct business within their provincial administrative regions, with few exceptions [4]. - Five critical operational red lines have been established to prevent misconduct, including prohibitions on guaranteeing principal, assisting in false reporting, and providing financing under the guise of acquiring non-performing assets [5]. Industry Challenges - Local AMCs are facing significant transformation challenges as they shift from rapid expansion to improving quality and efficiency, with increasing competition from national AMCs and economic downturns affecting asset quality [6][7]. - The industry is experiencing a "pyramid" structure, where the top five local AMCs account for over 40% of total assets, while smaller institutions are nearing marginalization [7]. Development Recommendations - To promote high-quality development, it is suggested to lower entry barriers for local AMCs, encourage diverse ownership structures, and implement market-based mechanisms for asset acquisition and transfer [8].

Company Dynamics - Hebei Asset Management Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, aiming to become the first local asset management company (AMC) from mainland China to be listed in Hong Kong [1] - Hebei Asset is the only institution in Hebei Province qualified for bulk acquisition and disposal of financial non-performing assets, established as a state-owned enterprise approved by the Hebei provincial government in November 2015 [1] - The company is currently controlled by Hebei Construction Investment Group, holding a 56.5% stake, with four other shareholders each holding 9.2% [1] Market Position - According to a report by Zhaoshang Consulting, Hebei Asset ranks second in Hebei Province in terms of the original value of newly acquired non-performing assets in 2024, with a market share of 24.4%, and ranks first among all non-performing asset management companies in the province with a market share of 47.2% for new acquisitions from small and medium-sized banks [2] - The company's non-performing asset operating income for 2022, 2023, and 2024 was RMB 424 million, RMB 222 million, and RMB 512 million, respectively [2] Business Performance - The main business lines of Hebei Asset include non-performing asset acquisition and disposal, restructuring, custody, and consulting services related to non-performing assets, with operating income from non-performing assets and consulting services being the primary revenue sources [2] - In 2024, Hebei Asset's non-performing asset operating income increased by 130% year-on-year to RMB 512 million, achieving a profit of RMB 204 million, while in 2023, the income was RMB 222 million, a 48% decline, resulting in a net loss of RMB 14.5 million [2] Industry Context - The non-performing asset industry is experiencing a competitive landscape characterized by a "pyramid" structure, where the top five local AMCs account for over 40% of the total assets in the industry, while smaller institutions are facing marginalization [3] - The success of Hebei Asset's listing and its potential impact on the local AMC industry is a point of ongoing interest [3]

Core Viewpoint - Hebei Asset Management Co., Ltd. has officially submitted its listing application to the Hong Kong Stock Exchange, marking a significant step as the first local Asset Management Company (AMC) aiming for a public listing in Hong Kong [2][4]. Company Overview - Hebei Asset was established on November 24, 2015, as a state-owned enterprise approved by the Hebei provincial government, and it became the first local AMC in Hebei with qualifications for bulk acquisition and disposal of financial non-performing assets [4][5]. - The company is primarily engaged in the acquisition and disposal of non-performing assets, restructuring, custody services, and related consulting services [4]. Financial Performance - As of the end of 2024, Hebei Asset's total assets reached 7.556 billion yuan, with non-performing asset operating income of 512 million yuan, reflecting a year-on-year growth of 130% [4][5]. - The revenue from non-performing asset operations has consistently accounted for over 99% of total revenue in the past three years, with the income from disposal and restructuring of non-performing assets showing significant fluctuations [4]. Market Position - In the context of China's AMC landscape, Hebei Asset holds a market share of 24.4% in the acquisition of non-performing assets within Hebei province, ranking second in terms of original value of newly acquired non-performing assets in 2024 [2][4]. - The current market structure includes 59 local AMCs, with Hebei Asset positioned in the middle to lower tier in terms of asset scale [5]. Listing Context - The listing application was submitted on June 27, 2024, with joint sponsors being Jianyin International and Shanzheng International [4]. - The local AMCs face stringent regulatory restrictions for listing on the A-share market, making the Hong Kong market a crucial avenue for expanding financing channels and enhancing corporate credibility [2][6]. Industry Trends - The non-performing asset management industry in China has seen rapid growth, with the original book balance increasing from 4.9 trillion yuan in 2020 to 5.8 trillion yuan in 2024, reflecting a compound annual growth rate of 4.4% [9]. - The local AMC sector is experiencing a trend of differentiation, with the top five local AMCs accounting for over 40% of the total asset scale, while smaller institutions are facing marginalization [9].

Group 1 - The conference titled "CITIC Financial Asset Heilongjiang Branch Financial Service Cooperation Initiative and Selected Asset Promotion Conference" was held in Harbin, aiming to promote local financial innovation and deepen the integration of financial institutions with the local economy [1][3] - CITIC Financial Asset Heilongjiang Branch focuses on providing a comprehensive range of financial services, including non-performing asset acquisition and corporate relief, to various financial institutions, listed companies, state-owned enterprises, and SMEs in the province [3][5] - The promotion event showcased core products and selected assets from CITIC Financial Asset, covering categories such as residential properties, large industrial plants, large commercial complexes, and land, providing detailed information to attendees [5] Group 2 - The initiative aims to attract strong investors to explore the value of special assets and contribute to the industrial upgrade and high-quality development of Northeast China [3] - The event highlighted quality asset projects from Heilongjiang, Dalian, Jilin, and Liaoning, emphasizing the potential value of assets in the Northeast region [5]