It can only handle projects with real and clear underlying assets.
Original Title: The Big Four Asset Management Companies have begun to dispose of bad debts left by P2P, but they can do very little
Author: Yao Shuheng
This year, a series of P2P platforms collapsed, causing losses for many investors, but also left a lot of assets to deal with the arrears. CICC also pointed out in the report that the number of P2P lending platform shutdowns will continue to increase, P2P shutdown tide is expected to continue for 2-3 years. Therefore, it is urgent to recover debt and pay investors.
In mid-August, the Banking and Insurance Regulatory Commission convened the top four asset management companies (AMC), Dongfang, Xinda, Huarong and Great Wall, to discuss how to dispose of P2P non-performing assets. Recently, the four major AMC disposal P2P overdue projects began to be implemented.
Great Wall Assets set up a P2P risk disposal working group to conduct risk mapping in several areas where P2P risk is concentrated. Eastern, on the other hand, has signed an agreement with ICFW to dispose of a total of 20 million overdue projects on the ICFW platform.
Credit fusion wealth encountered the problem of overdue repayment of loans by listed companies this year. Due to the deepening of deleveraging this year, listed companies have encountered great difficulties in directional additional issuance and bond issuance financing, so they can only borrow money from P2P platform. Shun Rong wealth to Busen shares, Yue Hongyuan, Zhong Hong shares and other listed companies are overdue loans. This leads directly to the lack of timely payment to investors.
Credit and wealth lending to listed companies is actually a gray area of compliance. According to the "Guiding Opinions on Promoting the Healthy Development of Internet Finance" issued by the People's Bank of China, the Ministry of Public Security and the Ministry of Finance, the P2P platform can only provide intermediary services for investors and financiers in information disclosure and transaction matching.
The loan / guarantee to listed companies constitutes credit enhancement, which is against industry norms. However, the Provisions of the Supreme People's Court on Several Questions of the Law Applicable to the Trial of Civil Lending Cases recognize this kind of loan/guarantee, so it is a gray area where violations are not illegal.
This part of the overdue project like credit fusion is fairly clear and easy to handle. Non-performing assets disposal companies can solve this part of the risk of P2P by investigating, acquiring and reselling the underlying assets according to the conventional process.
But the disposal of many P2P projects is very difficult. For example, the pool of funds and fund misappropriation, multiple transfers of creditors'rights, reorganization, re-asset securitization, false assets, and so on, even the underlying assets are difficult to verify, or even fundamentally false, it is difficult to deal with.
In addition to the problem of asset end itself, dealing with bad debts left by P2P also faces numerous regulatory restrictions.
First of all, according to the Circular of the Ministry of Finance, the People's Bank of China and the Banking Regulatory Commission on the Disposal of Individual Non-performing Loans in the Share Reform of State-owned Commercial Banks, AMC is not allowed to purchase individual loans. Many transactions on the P2P platform are loans between individuals and individuals.
Secondly, according to the Regulations of the Ministry of Finance and the CBRC on the Management of Non-financial Institutions'Non-performing Assets by Financial Asset Management Companies, P2P non-performing assets belong to non-financial institutions' non-performing assets, and AMC may not purchase non-financial institutions'non-corresponding assets and creditor's rights assets without real trading background. That is to say, AMC can not deal with the debts of "unfounded and debt free" in P2P.
In short, under existing laws and regulations, the Big Four can only deal with projects with real, clear underlying assets. It can't deal with lending transactions between individuals, and some of the suspected Ponzi scams, illegal fund-raising or fraud still require judicial intervention.
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