Credit Asset Transfer Registration Rules to Take Effect in September; Cumulative Volume Hits RMB 8.9 Trillion
China's new rules on credit asset transfer registration will take effect on September 1, making registration a mandatory pre-trade step. The rules introduce a unique registration code for each asset to enhance transparency and prevent fraudulent transfers. The Credit Assets Registration and Exchange Center has registered cumulative transfers of RMB 8.9 trillion since its inception through May 2026.
New regulations governing the transfer of credit assets in the banking sector will officially take effect on September 1. The registration scope covers various types of claims, including normal, watch-list, and non-performing loans, as well as income-rights transfer businesses.
The new rules upgrade registration from a previously recommended practice to a mandatory pre-trade procedure. Although credit asset transfers were already conducted through the Credit Assets Registration and Exchange Center, registration was not fully comprehensive; it was only encouraged in advance, and transfers could be registered retroactively, leaving gaps in reporting. To meet the new requirements, banks are currently adjusting their business processes. Transfer transactions must now be registered three days in advance, effectively serving as prior notification.
To close registration loopholes, the new rules introduce a unique registration code mechanism. Through a one-asset-one-code system, every credit asset transfer is fully recorded and traceable, promoting standardization and transparency in transfer transactions. This also helps counterparties verify the authenticity of asset information via the registration code, reducing due-diligence costs.
The new rules aim to address risk vulnerabilities in the credit asset transfer market, including off-market private transfers, gray-area operations involving post-trade registration or no registration at all, and practices such as false deconsolidation and non-clean transfers. They also seek to prevent situations where assets are nominally transferred through implicit repurchase agreements without a genuine transfer of risk. Additionally, the rules guard against duplicate asset transfers, code reuse, and significant discrepancies between transaction information and actual assets, reducing the potential for ownership disputes and interest tunneling while strengthening regulatory oversight and penetration capabilities.
The Credit Assets Registration and Exchange Center has gradually become the main channel for domestic credit asset transfers. Data show that from its establishment through the end of May 2026, the center has registered cumulative credit asset transfer business volume of RMB 8.9 trillion over more than a decade, covering over 100 million underlying assets.