CHAMC Cooperates with Haitong Securities CompanyThe China Huarong Asset Management Corporation (CHAMC) signed a strategic cooperation memorandum with Shanghai-based Haitong Securities Co. Ltd Friday, December 15.The memorandum was the first cooperation package between an asset management company and a securities company in China. The two sides will cooperate in the investment bank businesses,including securities underwriting, asset restructuring and capital operation. Under the agreement, Haitong will help Huarong restructure its book asset value of 500 billion yuan to secure a maximum recovery of state assets. Haitong will also undertake securities underwriting for some of Huarong's 8,000-plus debtor companies. The two sides will invest more capital in conducting research on resolving non-performing loans of Huarong with the powerful backup of Haitong's research and development institutions. CHAMC, China's largest asset management corporation, carried out a feasibility evaluation of the debt-to-equity plans for more than 500 companies in China. Haitong Securities, one of the leading comprehensive securities companies, ranked second in total securities issue in 1999. From January to October, that figure amounted to 1.18 trillion yuan. |
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