666 Million in Housing-Related Assets Precisely Risk-Mitigated, Can Chongqing Bank's Risk Control Capabilities Be Underestimated?

Listing | Zhongfang Network

Review | Li Xiaoyan

As the first city commercial bank in the central and western regions listed on both A-share and H-share markets, Chongqing Bank successfully surpassed 1 trillion yuan in total assets by 2025, entering a new stage of high-quality development. In response to the phased adjustment of the real estate industry and the associated risks of existing loans, the bank remains true to its financial roots, adhering to market-oriented and legal principles. It has taken multiple measures to efficiently dispose of real estate-related risk assets, including listing for transfer the restructured trust beneficiary rights related to real estate at a total minimum price of 660 million yuan. This approach not only safely resolves existing risks and protects financial asset security but also continuously optimizes asset structure and consolidates a solid foundation for stable operations, demonstrating the bank’s professional risk control capabilities and sense of responsibility.

The trust beneficiary rights publicly listed for transfer by Chongqing Bank are divided into Class A and Class B, both referring to the China Communications Trust·Huisheng Corporate Market-Oriented Restructuring Service Trust. Class A trust beneficiary rights were officially listed on March 9 at the Chongqing Property Exchange with a minimum price of 47 million yuan; Class B beneficiary rights were listed earlier at the end of January this year with a minimum price of approximately 613 million yuan. The total minimum price for both targets is 660 million yuan. The trust plan was established in February 2025, with a 36-month term, and the underlying assets include equity in the SPV company and corresponding claims. The entrusting party is Chongqing Bank Youyang Branch. The transfer process follows principles of openness, fairness, and justice, and is carried out in accordance with the current status of the assets.

The real estate assets involved in this disposal originate from the Youyang Huisheng Plaza project developed by Chongqing Huisheng Real Estate Development Co., Ltd. This project is a key component of Youyang’s old city renovation, located in the traditional core commercial district, with a total construction area of about 420,000 square meters, including 80,000 square meters of commercial space. It bears the responsibility of regional commercial upgrading and livelihood development. In 2017, Chongqing Huisheng received approval for a 570 million yuan loan from Chongqing Bank Youyang Branch for project development. In recent years, impacted by macroeconomic conditions, e-commerce trends, and pressures on the real economy, the project’s rental income has fallen short of expectations, and the company’s cash flow has tightened, making it difficult to fully cover the loan principal and interest on time, risking credit default. If the risk is not addressed promptly, the 570 million yuan loan could turn into non-performing assets, adversely affecting the bank’s asset quality and potentially destabilizing regional financial stability and project operations.

Faced with these risks, Chongqing Bank has taken proactive responsibility and responded swiftly, coordinating with local government, enterprises, and professional institutions to jointly promote risk mitigation and asset restructuring. Upholding the core goals of safeguarding livelihoods, stabilizing assets, and preventing risks, all parties have collaborated efficiently and overcome difficulties. Within just five days, 277 property transfer registrations were completed, covering nearly 30,000 square meters, and 3 million yuan of special maintenance funds were recovered and placed into dedicated accounts. This effectively cut off risk transmission, avoided the deterioration of large credit assets, and properly resolved legacy issues of the enterprise, protecting the value of project assets and the legitimate rights of all parties involved.

To achieve precise risk isolation and professional asset disposal, Chongqing Bank has innovatively used trust tools by establishing market-oriented restructuring service trusts. These trusts incorporate underlying assets such as real estate claims and equity into trust plans, managed by professional trustees to standardize asset disposal processes and improve risk mitigation effectiveness. The public listing and transfer of trust beneficiary rights is an important measure for the bank to deepen the revitalization of existing assets and optimize risk disposal. Through the property rights trading platform, the bank broadens disposal channels, attracts high-quality investors, and ensures orderly clearance of risk assets while maximizing disposal proceeds. This approach balances financial security and market efficiency, providing a practical example for regional banks in handling real estate-related risks.

Currently, as the risk mitigation in the real estate sector enters a critical phase, accelerating the disposal of existing real estate risk assets has become an inevitable choice to align with industry trends, fulfill regulatory requirements, and ensure the bank’s stable development. Chongqing Bank’s asset disposal process strictly follows regulatory guidance, adheres to compliance and transparent procedures, and is fully open. This not only effectively reduces potential non-performing assets but also further purifies the credit asset pool and optimizes the asset-liability structure, creating more space for steady business growth. Additionally, the bank, as a key player in regional finance, balances enterprise relief efforts with regional development, helping to activate high-quality commercial projects, maintain regional financial stability, and fulfill its mission of serving local economies and empowering the real economy.

With scale growth and quality improvement progressing simultaneously, risk prevention and stable operation are prioritized. Since 2025, Chongqing Bank has strengthened risk management comprehensively, increased efforts in disposing of risk and non-performing assets, and maintained continuous improvement in asset quality and operational performance. As of the end of September 2025, the bank’s total assets reached 1.023 trillion yuan, a 19.39% increase from the previous year, ranking among the leading listed city commercial banks in growth rate; total customer loans and advances amounted to 520.385 billion yuan, up 18.1%, supporting the real economy with precise credit deployment. In terms of profitability, the bank achieved operating income of 11.74 billion yuan in the first three quarters, a 10.4% increase; net profit attributable to the parent company after deducting non-recurring gains and losses was 4.865 billion yuan, up 11.16%, with both revenue and profit growing at double digits, indicating sustained development momentum.

Asset quality remains the lifeline of the bank’s stable growth. Chongqing Bank strictly maintains risk bottom lines, continuously improves its comprehensive risk management system, and proactively prevents and precisely handles various risks. Core risk control indicators have continued to optimize. As of the end of September 2025, the non-performing loan ratio decreased to 1.14%, down 0.11 percentage points from the end of the previous year; the loan loss reserve coverage ratio increased to 248.11%, up 3.03 percentage points, strengthening the bank’s risk resistance and providing a solid “safety cushion.” High-quality assets, stable operational results, and ample risk reserves support the bank’s efficient disposal of risk assets and high-quality development.

The listing and transfer of the trust beneficiary rights related to real estate is a pragmatic move by Chongqing Bank to optimize asset structure and strengthen risk control. It also vividly reflects the bank’s commitment to prudent management and quality-driven growth. Currently, the transfer of the two types of trust beneficiary rights is proceeding in an orderly manner, with the listing scheduled to end by the end of April this year. The subsequent realization of assets depends on the underlying asset value and market recognition.

Looking ahead, Chongqing Bank will continue to build on its trillion-yuan scale, stay true to its original mission of serving the real economy, coordinate development and safety, deepen risk prevention, innovate asset disposal models, accelerate risk resolution, optimize credit resource allocation, and increase financial support for key regional sectors and vulnerable areas. With more stable operations, higher-quality services, and stronger momentum, the bank aims to contribute to high-quality regional economic development and write a new chapter of steady growth and improved efficiency for a listed bank.