China's AMC Recovers 54 % of Non-Performing Assets

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Last updated at: (Beijing Time) Monday, January 07, 2002

China's AMC Recovers 54 % of Non-Performing Assets

The China Huarong Asset Management Corporation (Huarong) announced Sunday that in 2001 it handled non-performing assets with a book value of 23.21 billion yuan, of which 12.54 billion yuan was recovered, a rate as high as 54 percent.

Assets recovery measures

Yang Kaisheng, president of Huarong, said that in the year his company adopted a wide range of measures to recover the assets, including debt restructuring, debt trover, transfer of creditors' rights, packaged selling and public bidding.

Yang said that in addition to traditional ways of handling the non-performing assets, Huarong has launched an asset securitization project, and a pilot plan has been submitted to related supervising departments.

Assets amount

He said that of the total assets recovered, cash accounted for 7.55 billion yuan, a rate of 32.5 percent to the total assets handled.

In addition, transactions of the 12.8 billion yuan-worth of assets sold at the end of last year through international public bidding are being executed.

About Huarong

Huarong is one of four asset management corporations China established to handle the non-performing assets of state-owned banks. (1 U.S. dollar equals 8.27 RMB yuan)

It is a 100% state-owned financial enterprise with an independent legal personality.

The main scope of the Corporation covers the purchase, management, and disposal of the non-performing assets transferred from Industrial and Commercial Bank of China.

Chinese Non-Performing Assets Sold to Int'l Bidding Team

The China Huarong Asset Management Corporation announced Thursday in Beijing that it has agreed to sell non-performing assets with a book value of 10.8 billion yuan to an international bidding team headed by Morgan Stanley.

The move is widely seen as a significant step by China to accelerate the handling of huge amounts of non-performing financial assets bought by the AMCs from State-owned commercial banks.

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