Financial enterprises are the source of non-performing assets. The bad assets of banks are also called bad debts in a strict sense. The main business of many companies is the management of non-performing assets, which belongs to the financial industry. In recent years, non-performing assets are on the rise, which brings huge development space for the development of non-performing asset management companies.
Legal basis: Article 10 of the Regulations of People's Republic of China (PRC) on Financial Asset Management Companies, a financial asset management company may engage in the following business activities in managing and disposing of assets formed by the acquisition of non-performing loans of state-owned banks within the scope of non-performing loans of state-owned banks:
(1) Recovering debts
(2) Leasing, transferring or reorganizing the assets formed by purchasing non-performing loans in other forms.
(3) Converting creditor's rights into equity and holding shares in the enterprise by stages.
(4) listing recommendation and bond and stock underwriting of companies within the scope of asset management.
(5) Issuing financial bonds and borrowing from financial institutions.
(six) financial and legal advice, assets and project evaluation.
(seven) other business activities approved by the People's Bank of China and the China Securities Regulatory Commission.
A financial asset management company may apply to the People's Bank of China for refinancing.