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1.3 Trillion Yuan in Non-performing Assets have been Dealt With
Four Chinese financial management corporations have recently finished taking over non-performing assets of state-owned commercial banks worth a total value of over 1.3 trillion yuan, separating non-performing assets from other bank assets.
71% of the non-performing assets transferred to four assets management companies have been liquidated. Authorities estimate that after the separating the assets, the ratio of bad loans to total loans is expected to be kept under 20%.
Huarong Assets Management Corporation, which took over the biggest individual non-performing assets, examined and verified a total of 80,000 debtors with 407.7 billion yuan. Great Wall Assets Management Co. examined 2.06 million debtors with 4.86 million of cases non-performing assets. Cinda Assets Management Co., which finished taking over the bad loans the earliest, took over bad assets worth 350 billion yuan. The non-performing assets audited by Oriental Assets Management Co. involved 23,000 debtors, over 67,000 cases with 260 billion yuan in value.
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