Why Is Bank of Beijing "Trimming Down" at This Time? Turning "Subtraction" into "Addition" to Steadily Sprint Toward 5 Trillion

Listing | Zhongfang.com

Review | Li Xiaoyan

Since the beginning of 2026, a listing announcement from the Bank Credit Asset Registration and Circulation Center (YinDeng Center) has brought Beijing Bank (601169)’s asset disposal actions to the forefront—its Shanghai branch plans to transfer a total of 930 million yuan in non-performing loans through a single corporate transfer. The borrower is Shanghai Zhonghong Real Estate Development Co., Ltd., within the R&F Properties system, with the collateral being the R&F Global Center, a landmark project in the Hongqiao Business District.

This disposal is not an isolated case but a key step in Beijing Bank’s effort to reduce burdens and optimize its balance sheet amid its goal to reach a 5 trillion yuan asset scale. Facing the balancing act between expansion and capital constraints, the bank employs multi-dimensional, differentiated non-performing asset clearing strategies to facilitate steady development, demonstrating the risk management wisdom and strategic resolve of a leading city commercial bank.

The 930 million yuan debt includes 800 million yuan of principal, 130 million yuan of accrued interest, and 290,000 yuan in disposal fees. Although the weighted average overdue days as of the debt’s benchmark date is zero, it has been classified as a substandard asset within Beijing Bank’s internal five-tier classification, indicating that Zhonghong Real Estate’s actual repayment ability has encountered substantial obstacles. As a wholly owned project company of R&F Properties, Zhonghong is mired in tax arrears across multiple tax types, totaling over 70 million yuan, directly reflecting its severe cash flow shortages and heightened debt repayment risks.

The core collateral for this debt—the R&F Global Center in Shanghai—has a total construction area of nearly 270,000 square meters, including Grade A office buildings, the Ritz-Carlton Hotel, a four-star AC Hotel, and underground commercial plazas. It was once a flagship project in the Hongqiao Business District. Although the estimated value is about 1.4 billion yuan, theoretically enough to cover the debt, current market liquidity for commercial real estate is weak, valuations are under pressure, and with limited leasing of office space, ongoing heavy asset operations for hotels and commercial plazas, long leasing cycles, and slow cash flow recovery, the actual liquidation value of the collateral is significantly reduced.

Against this backdrop, Beijing Bank’s decision to publicly list and transfer the debt via the YinDeng Center is a precise move to shed its existing non-performing assets and a rational risk-clearing strategy. By transferring complex recovery pressures, the bank can avoid long-term disposal entrapments, quickly recover funds, and free up capital, creating conditions for future credit resources to flow toward high-quality sectors.

It is noteworthy that this disposal is not Beijing Bank’s only move to resolve risks in the real estate sector. In December 2025, the bank listed a 2.211 billion yuan debt claim involving Tahoe Group; in March 2025, it signed an agreement with the Beijing branch of Great Wall Asset Management to transfer an old trust debt of about 1.5 billion yuan principal and 800 million yuan interest, achieving thorough risk clearance through professional disposal. The orderly disposal of multiple large-scale real estate non-performing debts reflects Beijing Bank’s adherence to bottom-line thinking and proactive risk mitigation, strengthening its asset quality management.

Beyond existing non-performing asset transfers, Beijing Bank’s risk disposal emphasizes foresight and precision, forming a “pre-emptive recovery + diversified disposal” combined strategy to minimize risk losses.

In January 2026, during the window period when Snow浪 Environment was under pre-restructuring application and the court had not yet officially accepted the case, Beijing Bank’s Wuxi branch accurately predicted the company’s worsening financial condition and decisively initiated pre-emptive recovery procedures. It issued a “Full Loan Repayment Notice,” declaring the entire 35.041 million yuan loan due early and demanding immediate repayment. This move was based on in-depth analysis of the company’s financial data: from early 2025 to the end of Q3, Snow浪 Environment’s net assets plummeted from 237 million yuan to 82.407 million yuan—a 65% decline; its debt-to-asset ratio rose to 93.4%, nearing insolvency. By locking in risks early and swiftly recovering the loan, Beijing Bank effectively avoided potential future asset disposal losses, demonstrating sharp risk judgment and efficient risk control.

In routine disposal efforts, Beijing Bank prioritizes cash recovery, employing various methods such as debt transfer, batch disposal, and asset-for-debt swaps to improve efficiency and cash collection. In the first half of 2025, the bank wrote off and transferred non-performing loans totaling 9 billion yuan, a significant increase from the previous year. Through “clearing existing assets and strictly controlling new ones,” it continued to improve asset quality. By the end of Q3 2025, Beijing Bank’s non-performing loan ratio was 1.29%, down 0.02 percentage points from the start of the year, indicating increasing resilience in asset quality.

As of the end of Q3 2025, Beijing Bank’s total assets reached 4.89 trillion yuan, a 15.95% increase from the start of the year, with a year-on-year growth rate of 21.5%, significantly faster than the average for similar city commercial banks, just one step away from the 5 trillion yuan target. However, rapid expansion has intensified capital constraints, becoming a core challenge for the bank.

To address capital bottlenecks, Beijing Bank actively adjusts its asset allocation structure, pursuing a “reduce burden and improve quality” strategy. On one hand, it significantly increased holdings of low-risk-weight assets, with interbank and other financial institution deposits soaring from 15.64 billion yuan to 125.48 billion yuan in the first three quarters of 2025—an almost sevenfold increase—controlling risk-weighted asset growth and delaying the decline of the capital adequacy ratio. On the other hand, it focused on key sectors such as technology finance, green finance, and inclusive micro and small enterprise loans. By the end of Q3 2025, loans in these areas grew by 20.16%, 26.20%, and 16.91% respectively from the start of the year, promoting high-quality credit growth and optimizing the asset structure.

Additionally, Beijing Bank actively expands diversified income sources to offset profit pressures from scale growth. In the first three quarters of 2025, net fee and commission income reached 3.269 billion yuan, a 16.92% increase year-on-year, supporting revenue growth; its financial market business performed strongly, with entrusted assets totaling 2,947.75 billion yuan, up 29.74% from the start of the year, and entrusted business income rising 15.47% year-on-year, continuously enhancing market competitiveness. Through “structural adjustment, income expansion, and strengthened risk control,” Beijing Bank seeks a dynamic balance between scale expansion and capital constraints, accumulating momentum for crossing the 5 trillion yuan threshold.

Although Beijing Bank’s asset disposal and structural adjustments face certain challenges, in the long term, proactive reduction of burdens clears obstacles for sustainable development, presenting more opportunities than risks.

From the challenges perspective, on one hand, risk disposal in the real estate sector still requires time; weak liquidity and valuation fluctuations in the commercial office market may impact the progress and recovery efficiency of some non-performing assets, potentially affecting asset quality indicators in the short term. On the other hand, pressure on capital adequacy ratios and declining provisioning coverage ratios mean the bank’s resilience needs further enhancement, requiring future efforts such as profit retention and capital supplementing tools to sustain growth. Additionally, in Q3 2025, revenue declined by 1.08% year-on-year, with net profit growth only at 0.26%, indicating that profit growth momentum needs strengthening.

From the opportunities perspective, first, actively clearing non-performing assets can optimize the balance sheet, release high-quality credit capacity, and lay a foundation for supporting the real economy and strategic sectors. Second, low-risk-weight asset allocation and targeted credit support align with national strategies, helping improve asset yield and risk resistance. Third, rapid development of financial market and intermediary businesses diversifies income streams and stabilizes profits. Fourth, as a leading city commercial bank, Beijing Bank can leverage regional resources and customer base to further consolidate its market position and enhance industry influence during its journey toward a 5 trillion yuan scale.

From the listing of the 930 million yuan Hongqiao debt to the implementation of multi-dimensional non-performing asset clearing strategies, Beijing Bank’s proactive reduction, quality improvement, and efficiency enhancement at this critical stage demonstrate its responsibility and commitment as a top city commercial bank. Risk clearance is not the end but a new starting point for high-quality development.

In the future, as non-performing burdens are further shed, asset structures optimized, and capital constraints eased, Beijing Bank will continue to advance steadily, balancing scale expansion with prudent management. With precise risk control, diversified business advantages, and a strong customer base, the bank is poised to successfully surpass the 5 trillion yuan mark, maintaining its leading position in the city commercial bank sector and contributing more to serving the real economy and high-quality financial development.