1.66 billion in targeted insurance for real estate assets—can Chongqing Bank's risk control strength be underestimated?

Listing | Zhongfang.com

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 restructuring trust benefits 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 benefits being publicly listed and transferred 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 benefits were officially listed on March 9 at the Chongqing Property Exchange with a minimum price of 47 million yuan; Class B trust benefits 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 duration, underlying assets including equity and corresponding debt of SPV companies, with Chongqing Bank Youyang Branch as the entrusting party. The transfer process follows principles of openness, fairness, and justice, and proceeds in accordance with the current asset status.

The real estate assets involved in this disposal originate from the Youyang Huisheng Plaza project under 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 loan principal and interest on time, risking credit default. If the risk is not addressed promptly, the 570 million yuan loan could become non-performing assets, adversely affecting the bank’s asset quality and potentially destabilizing local financial stability and project operations.

Faced with this risk, Chongqing Bank has taken proactive responsibility and responded swiftly, coordinating with local government, enterprises, and professional institutions to jointly promote risk resolution and asset restructuring. Upholding the core goals of safeguarding livelihoods, stabilizing assets, and preventing risks, all parties collaborated efficiently and overcame difficulties. In just five days, 277 properties were transferred and registered, covering nearly 30,000 square meters; 3 million yuan of special maintenance funds were recovered and placed into dedicated accounts, effectively blocking risk transmission, preventing large-scale deterioration of credit assets, and properly resolving legacy issues of the enterprise, thereby protecting the value of project assets and the legitimate rights of all parties.

To achieve precise risk isolation and professional asset disposal, Chongqing Bank has innovatively used trust tools to establish market-oriented restructuring service trusts, incorporating real estate-related debt and equity into trust plans. Managed by professional trustees, this approach standardizes asset disposal processes and enhances the effectiveness of risk resolution. The public listing and transfer of trust benefits is an important measure for the bank to deepen the revitalization of existing assets and optimize risk disposal. Through the property rights trading platform, it broadens disposal channels, attracts high-quality investors, and ensures orderly clearance of risk assets while maximizing disposal proceeds. This 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 is a necessary response to industry trends, regulatory requirements, and the bank’s own stable development. Chongqing Bank’s asset disposal efforts strictly follow regulatory guidance, adhere to compliance and transparent procedures, and are fully open. This not only reduces potential non-performing assets but also further cleanses the credit asset pool and optimizes the asset-liability structure, creating more space for steady business growth. Additionally, the bank, as a key regional financial institution, balances enterprise relief and regional development in risk management, helping to revitalize 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 control and prudent management 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 steady business performance. As of the end of September 2025, total assets reached 1.023 trillion yuan, a 19.39% increase from the previous year, ranking among the leading listed city commercial banks; total customer loans and advances amounted to 520.385 billion yuan, up 18.1%, with targeted credit support for the real economy. In terms of operational performance, the bank achieved operating income of 11.74 billion yuan in the first three quarters, a 10.4% increase; net profit attributable to shareholders after deducting non-recurring gains and losses was 4.865 billion yuan, up 11.16%. Both revenue and profit grew at double-digit rates, indicating sustained growth momentum.

Asset quality is the lifeline of a bank’s stable development. 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 last year; the loan loss reserve coverage ratio increased to 248.11%, up 3.03 percentage points, strengthening the bank’s risk resistance capacity and solidifying its safety cushion. High-quality assets, stable operational results, and ample risk reserves provide a solid foundation for the bank’s efficient disposal of risk assets and high-quality development.

The listing and transfer of the real estate trust benefits 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 improving development quality. Currently, the two types of trust benefits are being transferred 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 mission of serving the real economy, coordinate development and safety, deepen risk prevention and control, innovate asset disposal models, accelerate risk resolution, optimize credit resource allocation, and focus on key regional sectors and vulnerable areas for increased financial support. With more prudent management, higher-quality services, and stronger momentum, the bank aims to contribute to high-quality regional economic development and write a new chapter of steady progress and improved efficiency for listed banks.