Legal analysis: the sources of non-performing loans acquired by asset management companies are: 1, issuing financial bonds; 2, the transfer of the people's Bank of China to the wholly state-owned commercial banks to issue part of the refinancing. Financial asset management companies purchase non-performing loans of state-owned banks in accordance with the scope and quota determined by the State Council; Acquisition beyond the determined scope or quota shall be subject to special approval of the State Council.

Legal basis: Article 14 of the Regulations on Financial Asset Management Companies The sources of funds for financial asset management companies to acquire non-performing loans include:

(a) transfer part of the refinancing issued by the People's Bank of China to a wholly state-owned commercial bank;

(2) Issuing financial bonds.

Re-loans issued by the People's Bank of China to wholly state-owned commercial banks are transferred to financial asset management companies at a fixed annual interest rate of 2.25%.