How to deal with non-performing assets?

Bankruptcy and reorganization、Liquidation business has always been an indispensable part of the legal profession for lawyers who are full-time or interested in engaging in corporate business.。Bankruptcy and reorganization、清算业务有其独特性，是基于团队协作、This can only be accomplished with the cooperation of multiple parties，And mainly non-litigation、Specialized legal services supplemented by litigation。

At this stage，my country’s economic growth rate is declining、Deleveraging in the corporate sector and the downturn in the real estate market have caused a surge in non-performing loans in the banking system，With the adjustment of my country's major policies，Various signals indicate：The feast of non-performing asset disposal has begun，Mergers and Acquisitions，Bankruptcy and reorganization、清算等业务领域也将迎来周期性的机遇。

Signal 1：Court accepts compulsory liquidation、Bankruptcy cases increase in May 2025，The High People's Court issued the "Notice on Carrying out the Trial of Bankruptcy Cases in accordance with the Law and Actively and Steadyly Promoting the Rescue and Liquidation of Bankrupt Enterprises"，Promote the disposal of "zombie enterprises"。

As of July 2025，Liquidation and Bankruptcy Tribunals of the National Courts，From only 5 at the beginning of 2025 to 90，including 3 high courts、57intermediate court、30grassroots court，Covering 23 provinces, municipalities and autonomous regions across the country。2025Year，Courts across the country accepted a total of bankruptcy cases (including bankruptcy liquidation、Bankruptcy reorganization and bankruptcy settlement) 5665 cases，An increase of 53.8% compared with 2005。

According to the recent National Court Bankruptcy Trial Work Conference held in Shenzhen,，As of December 21, 2025，2025In 2017, courts across the country accepted a total of 8,984 existing cases of compulsory liquidation and bankruptcy.，The possibility of continued growth in subsequent cases cannot be ruled out。

Signal 2：Accelerated expansion of local and banking AMC licenses in 1999，Cinda、East、Great Wall、Huarong’s four major AMCs (asset management companies) were established one after another，Responsible for acquisitions、manage、Disposal of corresponding China Construction Bank and China Development Bank、Bank of China、Agricultural Bank of China、Non-performing assets divested by Industrial and Commercial Bank of China，In the early days, there were only the four AMCs mentioned above.。

2025October，The General Office of the China Banking Regulatory Commission issued a "Letter on Appropriate Adjustments to Relevant Policies for Local Asset Management Companies" to all provincial governments.，Restrictions on local AMCs’ acquisition of non-performing assets and their non-transferability have been lifted.，Allow provinces and cities that are willing to add one，The China Banking Regulatory Commission has significantly accelerated its announcement of the list of local AMCs.。

As of September 2025，Including the local AMC under preparation，There are a total of 58 local AMCs in my country，in，Guangzhou、Six provinces including Fujian have established three (or more) local AMCs，at the same time，Many provinces and cities have begun preparations for the second local AMC within their jurisdictions。

in addition，The China Banking Regulatory Commission will gradually approve the establishment of China Construction Bank in mid-April 2025.、Agricultural Bank of China’s debt-for-equity swap implementation agency，Following the establishment of "Industrial AMC", an asset management company under the banking system，Banking AMCs will also usher in capacity expansion。The officially disclosed market size information for non-performing asset disposal is around 5 trillion (

1. 6trillion bad plus
2. 4trillions of attention loans)，This is publicly disclosed by all listed banks as of the first half of 2025.。

plus shadow banking，Comprehensive opinions of analysts from different institutions on China's non-performing loan market，It can be roughly judged that the actual size of China's full-scale non-performing asset market may be around 10 trillion.。The aforementioned signal means，for at least the next five to ten years，Engaged in disposal of non-performing assets，Debt collection，Mergers and Acquisitions，Bankruptcy and reorganization、Colleagues in liquidation business will have great achievements。

In order to facilitate lawyer colleagues to quickly understand and master bankruptcy reorganization、Basic points of clearing business，Here is a brief introduction to bankruptcy and reorganization、Several issues of common concern in liquidation projects：one、Bankruptcy and reorganization、On the one hand, the market demand for clearing business，Due to new changes in my country's economic policy，

Require

Zombie companies exit in an orderly manner；on the other hand，Among the cases that cannot be enforced, the number of cases that meet the conditions for enforcement and conversion is very large.，The People's Court will actively solve the problems of difficulty in court enforcement and difficulty in corporate bankruptcy through "enforcement to bankruptcy"，Resolve related conflicts and disputes through bankruptcy。

For debtors (especially individual shareholders of the company)，If liquidation obligations are not fulfilled in a timely manner，It will lead to an increase in personal debt risks (there have been many cases where shareholders have failed to fulfill their company liquidation obligations).，A case in which the court finally ruled that shareholders were jointly and severally liable for the company’s external debts)。therefore，Timely fulfillment of liquidation obligations is particularly important for shareholders。relative to creditors，It is also a rational choice from being greedy for more and seeking perfection to stopping losses in time.。

The Bankruptcy Law has been in effect for more than ten years，Its main legislative purpose is to clean up the claims and debts of companies that are unable to repay their debts.，Asset management of enterprises with reorganization value、debt restructuring，Reduce financial costs，Make it easy to travel，Focus on development；No hope of reconstruction、Enterprises that affect the credit of the entire market must be liquidated promptly to withdraw from market operations.，Maintain normal market order。

Many companies are faced with heavy debt burdens，backward business philosophy，leading to lack of development，The creditor-debt relationship has not been cleared up for a long time，Litigation cases are emerging one after another。Practice proves，Bankruptcy and reorganization procedures are an effective way for the above-mentioned enterprises to resolve crises.。For investors，It is expected that the phoenix nirvana will be achieved through the bankruptcy and reorganization procedures of the enterprise.。

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