Chinese NPLs Conference
1120 Avenue of the Americas, 6th Floor, New York, NY 10036
As is the host of the leading Italian and Greek NPL events annually in Europe, IMN has established a strong network of large private equity firms specializing in the investment and servicing of bank loan portfolios. Building on the success of these events, the inaugural Chinese NPLs Conference, taking place November 2020 in Shanghai, will bring together overseas investors and local asset management companies to discuss strategies that will help China’s leading banking institutions optimise their balance sheets. The programme will cover the various means of NPL disposal including whole loan sales, in-house and third party servicing, and the potential role of securitisation.
Who Should Attend
- International and onshore banks (Underwriting and treasury teams)
- Corporate borrowers
- Investment managers and asset managers
- Mortgage lenders
- Issuer and underwriter’s counsel
- Local and international ratings agencies
- Key regulators of the structured credit markets in Asia
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Friday, 20 November 2020
Breakfast and Delegate Registration
Pre-Conference Primer: China NPL market 101
- Understand the classification of NPLs in China and how it differs from those in other jurisdictions;
- Understand the market development of China NPLs market– from the NPL crisis 20 years ago to the current status;
- A brief introduction of the regulatory landscape in China NPL market – which regulators oversee the market, what is the individual role of PBOC (People’s Bank of China) and CBIRC (China Banking and Insurance Regulatory Commission)?
- An introduction of China NPL ecosystem – who are the main market participants? What are their functions?
- What does NPAS (Non-performing Asset Securitisation) mean? What are the underlying assets? What is the difference between NPAS and traditional securitisation?
Hosts’ Welcoming Remarks: IMN
- Jade Friedensohn, Managing Director (IMN)
Outlook of Global Economy
- How much has Coronavirus affected the global economy? With the virus spread in Asia and Europe, will the world still meet the IMF forecast of the annual growth rate of 3.3% this year?
- What measures have been taken by the leading economies to mitigate the negative influences? Will a global recession be triggered amid virus outbreak, trade tensions, and geographically political risks?
- A review of China’s 2020 and its 13th Five-Year achievements. What impacts has Coronavirus caused on China? How much did it slow down the growth of the world’s second largest economy?
- 2021 is the first year of China’s 14th Five-year Plan, what are the next steps, what kind of monetary and fiscal policies can we expect? Will China bounce back rapidly after the ‘virus hit’?
- A new world order after 2020? – what will happen after the US election, Brexit transition period, and the Coronavirus damage;
The Rising Investment Opportunities: China NPL Market
- What is the current NPL level in China? A discussion about banks’ strategies and efforts to reduce NPL;
- How have China’s NPL management strategies evolved during the last two decades? What lessons have we learnt?
- What are the main strategies of NPL clean-up? Which market players are involved? Costs comparison among different NPL disposal strategies;
- China has been raising tolerance for NPL ratio since the outbreak of Coronavirus, what will be the consequences and what are the associated opportunities?
- Does the rising level of NPL constitute a large threat to China’s banking stability? Compared to state owned banks, are smaller lenders more risky – local commercial banks, rural credit cooperatives, and rural commercial banks?
- Why asset quality is a big issue of NPL, will asset quality deteriorate further in the coming years amid trade tensions and other uncertainties?
- The future of China NPL market: with foreign servicers entering China market and obtain local AMC licenses, what are the impacts?
Refreshment Break in Exhibition Hall
On Stage Interview with Local AMCs
- Status check: Efforts and achievements of local AMCs;
- Besides NPL disposal, what other business are they involved in?
- Is NPL business still bringing attractive profit to them? What efforts have AMCs made to maximise their profitability?
- With more companies are granted AMC license, what are the new challenges facing existing market players? What are their advantages in the market?
- How do non-licensed AMC spot opportunities in the market? Compared to industrial/ultimate investors, what are their strengths?
- Innovations in NPL disposal;
Global Investors’ Panel: What Happens Next When US Institutions Are Allowed to Apply for AMC Licenses in China
- The phase-one US China trade deal allows US institutions to acquire nonperforming loans directly from Chinese banks, what are we expecting to see in the market?
- How important is it for international servicers and investors to have onshore presences?
- NPL outlook and developments in other more mature countries/markets;
- Servicing and foreclosure: good practices and public oversight;
- Compare and Contrast China NPL market with the other jurisdictions;
- Discussion around different asset classes and expected returns - Which NPL assets are most attractive to international investors?
- A forecast of the upcoming year: Where are the opportunities? What are the concerns?
- Why banks choose to use securitisation as a tool to deal with NPL especially when the underlying assets are credit card and mortgage? What are the main features of these underlying assets?
- What are the key differences between a traditional ABS and NPAS? When the underlying assets are NPA (Non-performing Assets), what should investors, especially junior tranche investors pay attention to?
- Key issues in valuation;
- What are the challenges facing rating agencies?
- Strategies to mitigate the risk when designing the deal structure;
Real Estate Valuation Developments
- Outlook of China real estate market, will the property prices continue to rise after Coronavirus attack? Will the trends differ among Tier 1cities and the rest of the country?
- What are the key challenges in real estate valuation, especially for commercial property?
- Will the increasing value decrease LTV ratio and improve the recovery rate?
Experience from More Established Jurisdictions in Europe and US
- What efforts have been made in European countries to reduce NPL ratio from the government level? To what extent has the government get involved? Has the government intervention worked?
- How much amount of NPL has been reduced? Which sectors still have the highest volume of NPLs?
- What kind of role should China government play in NPL reduction?
- Good practice sharing: Banks’ strategies of NPL reduction;
- Good practice and experience sharing by servicers and investors;
Opportunities in Distressed Business amid A Slowing down Economy
- How are SMEs coping with the virus crisis? What strategies did they take to survive? How many of them went bankruptcy because of the virus outbreak? Which industries suffer the most?
- Banks’ efforts to support SMEs;
- What are the challenges when collecting loans from distressed business?
- What infrastructures are required to deal with SME loans;
- What is the real value to due diligence when dealing with SMEs?
- Where are the opportunities?
Refreshment Break in Exhibition Hall
Outlook of China Bond Market
- China’s debt level has been rising rapidly since 2009, which has reached over 300% of its GDP in 2019. What are the reasons behind this? Is the country’s deleveraging strategy working?
- With 177 bonds went default in various sectors in 2019, do investors still have confidence in fixed income market? What are the impacts of corporate bond default? Are Quasi- municipal bonds still safe?
- What is the impact of enterprise bond and corporate bond issuance moving from an approval system to a registration system? Can we expecting a huge increase in the issuance?
- What is the impact of the inclusion of China’s government bonds into JP Morgan Government Bond Index Emerging Markets?
- What are the differences in the methodologies applied by CRAs when rating bonds onshore and offshore? What are the challenges facing rating agencies?
- To what extent did Coronavirus affect firms’ ability to repay bonds? Will the default rate hit a record high in 2020?
Asia NPL Level – How much is China affecting the Whole Asia?
- China, Japan, and Korea all suffered badly from the outbreak of Coronavirus, how much did this hurt the region’s economy?
- Are bank in Asia experiencing a higher NPL ratio in 2020? What is the current situation?
- What have been banks doing to control NPL level in other Asian areas? Did this bring new opportunities for international investors?
The 1st Annual Chinese NPLs Conference Concludes
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