Measures for the Administration of Asset Disposal of Financial Asset Management Companies

On July 9, 2008, the Ministry of Finance issued the Measures for the Administration of Asset Disposal of Financial Asset Management Companies with the document of Jin Cai [2008] No.85. The Measures are divided into 8 chapters and 49 articles, including general provisions, disposal audit institutions, disposal approval, disposal implementation, disposal management, disposal authority division, supervision and inspection, and supplementary provisions, and shall come into force as of the date of promulgation. On April 30, 2004, the Notice of the Ministry of Finance on Printing and Distributing the Measures for the Administration of Asset Disposal of Financial Asset Management Companies (Revised) (Jin Cai [2004] No.41) was abolished at the same time.

Confirm the collateral according to the credit file data, collect and analyze the investigation data and investigate the site, and get the priority creditor's rights value of the collateral through calculation and analysis; This paper analyzes the repayment ability of the principal creditor from the aspects of principal and interest repayment, financial report, effective assets under its name, enterprise nature, enterprise scale, current operating status, historical credit status, location and asset preservation, and obtains the value of the general repaid creditor's rights; This paper analyzes the repayment ability of the guarantor from the aspects of debt service, industrial and commercial annual inspection, business address inquiry, financial report, industry, effective assets under the name, enterprise nature, enterprise scale, current operating status, historical credit status, location and asset preservation. And obtain the value of the secured creditor's rights; Estimated amount of creditor's rights recovered = value of priority creditor's rights+general creditor's rights+value of secured creditor's rights.

In order to further standardize the asset disposal behavior of financial asset management companies (hereinafter referred to as asset companies), enhance the transparency of asset disposal, accept public supervision, prevent moral hazard, and promote asset companies to dispose of non-performing assets in accordance with the principles of openness, fairness, impartiality, competition and merit-based, so as to maximize the income from asset disposal and reduce losses, these Measures are formulated in accordance with the Regulations on Financial Asset Management Companies and the Administrative Measures on Asset Disposal of Financial Asset Management Companies (Revised).

Legal basis:

Measures for the Administration of Asset Disposal of Financial Asset Management Companies (Revised)

Article 1 In order to standardize the asset disposal management procedures and behaviors of financial asset management companies (hereinafter referred to as asset companies), ensure the maximization of asset disposal income and prevent disposal risks, these Measures are formulated in accordance with the relevant provisions of the state.

Article 2 These Measures shall apply to China Huarong Asset Management Company, China Great Wall Asset Management Company, China Oriental Asset Management Company and China Cinda Asset Management Company established with the approval of the State Council.

These Measures shall apply to China Yin Jian Investment Co., Ltd. and Huida Asset Custody Co., Ltd.

Article 3 The term "asset disposal" as mentioned in these Measures refers to the business activities of an asset company that comprehensively uses various means and methods within its business scope in accordance with relevant laws and regulations to realize the value of acquired non-performing assets.

The management and disposal of non-performing assets entrusted by asset companies can be implemented with reference to these measures. If there are other provisions in the entrustment agreement, such provisions shall prevail.