China sets up new firm to handle bad loans left by central bank

China has set up a firm specially handling non-performing loans left over by the People's Bank of China.

The new company, Huida Asset Management Ltd., began operation officially last Friday, said the state-run China Cinda Asset Management Corp., its biggest shareholder, on its Website.

Huida will take a slew of market-based measures to save state-owned assets to the greatest extent and reduce losses, the source said.

Cinda will provide business guidance and professional training, and create a sound operation environment for Huida under the requirements of the central bank, the Ministry of Finance and China Banking Regulatory Commission, it said.

Cinda will also strengthen supervision over the new company to streamline its operation.

Cinda was set up in 1999 to handle large amounts of non-performing loans transferred from China Construction Bank, one of the country's Big Four state lenders.

The size of the central bank's non-performing assets has not been disclosed.

Source: Xinhua

People's Daily Online ---