Finance Association, November 15 (Reporter Guo Zishuo) Yesterday, there was market news that Sichuan Jincheng Consumer Finance Co., Ltd. (hereinafter referred to as Jincheng Consumer Finance) had more than 1,000 personal mortgage loan projects auctioned on the Ali Asset Auction Platform.

A Finance Association reporter visited the Ali auction platform at 10 p.m. on November 14 and saw that Jincheng Consumer Finance still has more than 433 mortgage loan loan projects online. The starting price ranges from 2,299 yuan to 0.12 million yuan, and the security deposit ranges from 2,000 yuan to 0.04 million yuan. The end time for this round of the Jincheng Consumer Finance Personal Mortgage Claim Project will end at 5 p.m. on November 15.

Looking back, most of the personal mortgage projects listed this time are one-shot projects, and a few are two-shot projects. As far as the price is concerned, the starting price of the personal mortgage auction project is less than half of the principal amount of the mortgage loan. The debt amount for some projects is RMB 205137.01, including the principal amount of the debt of RMB 167,397.39, the creditor's interest of RMB 35740.62, and other expenses of RMB 1999. The starting bid price was 0.099129 million yuan, and the starting price was 48% off the amount of the claim.

However, there are also projects where the starting price is less than 10% off the total amount of claims. A CIFA reporter noticed that there is an individual mortgage claim with a total amount of 59,448.13 yuan. The starting price is only 2,299 yuan, or about 3.8% of the total amount of claims. As of press release, some people have asked for 3,299 yuan for the project.

In response to Jincheng Consumer Finance listing personal mortgage loan projects in batches on the Ali Asset Platform, Su Xiaorui, a senior researcher at Suxi Zhiyan, said that this is a normal bad asset disposal operation. However, this round of auctions also reflects some problems. Mortgage loan debt transfers also face certain challenges. Since there are few bidders, even some small-value projects will be listed over and over again.

The mortgage product Jinxiang Loan is one of the three main consumer finance products of Jincheng Consumer Finance. In addition, there are also Jinxiang Loan and Jinxiang Loan. According to the official website, Jinxiang Loan's annualized interest rate (simple interest) is 9%-19.23%, and a single person can borrow 0.2 million yuan for up to 5 years.

Bad personal mortgage claims have been disposed of many times in recent years

In recent years, Jincheng Consumer Finance has disposed of bad personal mortgage claims several times. Since August 2022, Jincheng Consumer Finance has published personal debt transfer auction information on the Alibaba Auction Platform. The number of transfers is thousands, and all collateral for transferring claims is real estate. In October of the previous year, Sichuan Jincheng Consumer Finance listed a large number of personal debt asset transfer projects on the Southwest Joint Property Exchange. The listing price of individual debt assets ranged from tens of thousands to 100,000, basically at the level of 40% to 50% off the corresponding debt balance (debt principal plus interest).

Jincheng Consumer Finance was founded in 2010. The company was jointly initiated by Bank of Chengdu and Hong Leong Bank Malaysia in 2010. It is one of the first consumer finance companies in the country. In October 2018, the registered capital of Jincheng Consumer Finance increased from 0.32 billion yuan to 0.42 billion yuan. After the capital increase, the Bank of Chengdu held 38.86% of Jincheng Consumer Finance's shares. As of the end of June 2024, Jincheng Consumer Finance had total assets of 12441.0667 million yuan and net assets of 1808.3129 million yuan. In the first half of 2024, Jincheng Consumer Finance achieved operating income of 530.2982 million yuan, a year-on-year decrease of 3.71%; net profit of 80.2255 million yuan, a year-on-year decrease of 49.62%.

In the 2023 information disclosure report disclosed by the company during the year, Jincheng Consumer Finance stated that the company insists on risk mitigation, continues to step up efforts to dispose of non-performing loans, and continuously optimizes the credit structure.

Looking at the entire market, there aren't many consumer finance companies that currently have mortgage loans. Apart from Jincheng Consumer Finance, there are also Bank of China Consumer Finance, Jinmeixin Consumer Finance, Sichuan Vipin Fubon Consumer Finance, and Jinshang Consumer Finance. According to industry insiders, the external environment has changed, some mortgage loans have a long settlement and disposal cycle, and the overall credit risk and asset quality control of some consumer finance companies are still under pressure.