Since 2000, Fidelity’s professional lawyers specializing in non-performing asset (NPA) legal affairs have been committed to developing and advancing NPA management and disposal services. Over the years, Fidelity has established a specialized professional team dedicated to NPA management and disposal. Building on this foundation, the firm has integrated resources from its headquarters and regional offices to form the “Fidelity Special Assets Team,” which focuses exclusively on NPA-related legal services.

In recent years, Fidelity has established branches in multiple locations, including Xiamen, Fuzhou, Quanzhou, Longyan, Zhangzhou, Sanming, Putian, Ningde, and Nanping within Fujian Province, as well as in Shanghai and Haikou. This expansion has built a comprehensive, multi-tiered legal service network that fully covers the West Coast Economic Zone and continues to extend toward major cities across China. At the same time, Fidelity has partnered with foreign law firms and firms in Hong Kong, Macao, and Taiwan, t aking root in Fujian while maintaining a global outlook to assist clients in cross-border NPA recovery.

Leveraging this foundation, Fidelity’s professional NPA legal team has built an integrated service and resource platform encompassing NPA investment and financing, transaction structuring, debt recovery, and high-level asset resolution.

Fidelity’s professional lawyers specializing in non-performing assets possess a strong theoretical foundation in areas such as Property Law, Contract Law, Tort Liability Law, Company Law, Enterprise Bankruptcy Law, and Tax Law. Some also have interdisciplinary backgrounds in economics, accounting, and taxation, providing essential talent support for NPA legal services. These lawyers combine exceptional professional expertise and extensive practical experience with outstanding communication, coordination, and resource integration capabilities.

Fidelity’s NPA lawyers are adept at taking innovative legal approaches, skillfully combining litigation and enforcement strategies to enhance recovery effectiveness. They apply measures such as creditor subrogation, actio pauliana (creditor’s revocation right), contract invalidation, and removal of execution obstacles arising from lease agreements to help clients recover debts from secondary obligors, auction mortgaged assets, and pursue additional assets. By utilizing techniques such as piercing the corporate veil and adding shareholders, directors, senior executives, actual controllers, and liquidation team members as additional defendants, Fidelity has successfully assisted clients in asserting rights against responsible parties and improving debt recovery outcomes. Furthermore, the team creatively integrates legal mechanisms such as debt-to-equity swaps, liquidation and bankruptcy proceedings, and asset securitization to promote high-end NPA resolution through restructuring, mergers and acquisitions, and securitized asset disposal.

Over the years, Fidelity’s professional NPA lawyers have provided high-quality and efficient legal services in NPA management, investment, and disposal for major financial institutions, asset management companies, NPA investment enterprises, and individual clients.

Scope of Legal Services of Fidelity’s Non-Performing Assets Legal Affairs Department

◇Due Diligence on Non-Performing Assets
Conduct legal due diligence on NPA projects to provide essential information for decisions related to asset bundling, transactions, and disposal.

◇NPA Investment
Provide legal analysis and recommendations for NPA investment based on project investigations, and assist clients in completing NPA transactions.

◇NPA Management
Offer full-process management services covering bundling, trading, disposal, and maintenance of non-performing assets.

◇NPA Disposal
Provide advanced legal services related to liquidation, restructuring, mergers and acquisitions, asset securitization, and debt-to-equity swaps.

◇Other NPA-Related Services

Major Achievements of the Non-Performing Assets and Enforcement Legal Affairs Department

◇In 2005, assisted Goldstone China Investment (II) Co., Ltd. in successfully recovering over RMB 100 million in NPA debt from a Xiamen-based company.

◇In 2006, provided legal due diligence and issued legal opinions for Avenue Capital (U.S.) regarding its proposed acquisition of NPA portfolios from the Industrial and Commercial Bank of China (ICBC).

◇In 2007, provided due diligence and enforcement legal services for China Orient Asset Management Corporation in relation to the compulsory enforcement of NPA projects from the Bank of China Fujian Branch.

◇Since 2007, acted for China Minsheng Bank Quanzhou Branch in handling corporate and personal loan recovery cases, and served as its long-term legal counsel from 2015 to 2016. The team represented the bank in nearly 100 financial loan contract disputes, including over 40 corporate NPA recovery cases with a total amount exceeding RMB 1 billion.

◇In 2008, provided integrated services — including legal opinions, asset investigations, litigation, and enforcement — to Standard Chartered Bank (China) Ltd. in Xiamen for its financial leasing debt recovery, successfully collecting the full amount owed.

◇In 2010, by initiating Xiamen’s first compulsory liquidation case, facilitated debt recovery for Xiamen Lusheng Logistics Co., Ltd. involving nearly RMB 600 million of NPAs acquired from China Huarong Asset Management Corporation Fuzhou Office, successfully compelling shareholders of a Xiamen furniture company to assume joint liability for the company’s debts.

◇Since 2011, assisted Xiamen Huiyang Investment Co., Ltd. in recovering multiple debts from its acquisition of Dongxin United Asset Management Co., Ltd., totaling RMB 14.5 billion — the largest NPA acquisition project in Fujian’s history. By piercing the corporate veil and pursuing shareholder liability, the firm achieved remarkable results.

◇Since 2013, represented the Industrial and Commercial Bank of China (ICBC) Xiamen Branch, Jimei Sub-branch, and Fuzhou Fuqing Sub-branch in more than 20 litigation and arbitration cases involving financial loan contract disputes.

◇Since 2014, acted for Xiamen Rural Commercial Bank in over 10 litigation and arbitration cases concerning financial loan contract disputes.

◇Since 2014, represented Industrial Bank Ningde Branch, Fu’an Sub-branch, and Xiapu Sub-branch in over 70 litigation cases related to financial loan contract disputes.

◇Since 2015, provided legal services — including due diligence and debt recovery — for over RMB 10 billion worth of NPAs acquired by Haian Capital and Chengtong Huan’an Capital.

◇From 2014 to 2015, represented Industrial Bank Quanzhou Branch in recovering both corporate and personal loans, with corporate loan disputes involving several hundred million yuan. Additionally, conducted due diligence for NPA transfers worth several hundred million yuan.

◇Since 2015, represented China Everbright Bank Quanzhou Branch in numerous corporate and personal loan recovery cases, handling dozens of financial loan contract disputes with total amounts reaching several hundred million yuan.

◇Since 2015, provided due diligence and litigation representation services for Ping An Bank Quanzhou Branch in financial loan contract dispute cases.

◇Since 2015, has served as the long-term legal advisor and litigation representative for Xiamen International Bank Quanzhou Branch in financial loan contract dispute cases.

◇Since 2013, has handled insurance contract dispute cases for the Quanzhou Branch of PICC Property and Casualty Company Limited.

◇Since 2015, has represented PICC Property and Casualty Company Limited Quanzhou Branch and its subsidiaries in subrogation and recovery matters following insurance indemnifications, handling nearly 300 cases by 2018.

◇Since 2015, has provided legal services for Shanghai Pudong Development Bank Quanzhou Branch, representing over ten cases involving several hundred million yuan.

◇Since 2015, has represented DBS Bank (China) Ltd. Guangzhou Branch in litigation involving financial loan contract disputes.

◇Since 2016, has represented China Minsheng Bank Fuzhou and Xiamen Branches in over 50 financial loan contract dispute cases.

◇Since 2016, has acted for China Merchants Bank branches in Xiamen, Zhangzhou, Longyan, and Quanzhou in dozens of financial loan contract disputes and non-litigation matters related to asset restructuring.

◇Since 2017, has represented China Huarong Asset Management Co., Ltd. Fujian Branch in financial contract disputes with Fujian Quanhao Real Estate Development Co., Ltd. and Fujian Jialong Real Estate Development Co., Ltd., involving over RMB 300 million.

◇Since 2017, has provided litigation services for China Everbright Bank Zhangzhou Sub-branch, managing recovery of both corporate and personal loans exceeding RMB 200 million.

◇Since 2017, has provided both litigation and non-litigation legal services for China Huarong Asset Management Co., Ltd. Fujian Branch, handling NPA recovery in the Zhangzhou area with total amounts exceeding several hundred million yuan.

◇Since 2018, has provided litigation services for Ping An Property & Casualty Insurance Company of China, Ltd., handling subrogation cases related to performance bond claims in the Zhangzhou region.

◇Since 2016, has issued due diligence reports and legal opinions for five Mercedes-Benz Auto Finance China personal auto loan ABS projects (2016 Phase II to 2018 Phase II), with a total issuance scale exceeding RMB 31.086 billion and a credit rating of AAA.

◇Since 2018, has provided legal document review services for Xiamen Hengchi Huitong Financial Leasing Co., Ltd. in its 2018 first asset-backed note issuance, backed by auto lease receivables.

◇Engaged by Xiamen Datang Real Estate Group Co., Ltd. to participate in the Huifu–Datang Fuxin 2018 Phase I Accounts Receivable Financing Plan, serving as the special legal advisor for Datang’s first accounts receivable ABS (home purchase balance ABS), successfully listed on the Beijing Financial Assets Exchange.

◇In 2018, represented Fujian Jiayuan Construction Engineering Co., Ltd. (as the creditors’ meeting chair) in the enforcement-to-bankruptcy reorganization cases of Youxi Kaiyue Real Estate Development Co., Ltd. and Youxi Shanhai Hotel Co., Ltd.

◇In 2019, represented China CITIC Bank Corporation Limited Xiamen Branch (as the creditors’ meeting chair) in the bankruptcy liquidation case of Xiamen Tuoxingcheng Group Co., Ltd.

◇Since 2019, has provided extensive due diligence services for Ningbo Financial Asset Management Co., Ltd. across numerous NPA projects throughout Fujian Province.

◇Provided comprehensive legal services — including but not limited to due diligence, debt collection, receivables transfer, and transaction support — for major asset management and investment institutions such as China Cinda Asset Management Co., Ltd., China Orient Asset Management Co., Ltd., China Huarong Asset Management Co., Ltd., China Great Wall Asset Management Co., Ltd., Fujian Mintou Asset Management Co., Ltd., Industrial Bank Asset Management Co., Ltd., Xiamen Asset Management Co., Ltd., Zhejiang Zheshang Asset Management Co., Ltd., Ningbo Financial Asset Management Co., Ltd., Haian Investment, and Huan’an Investment, among others.