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China's Finance Companies Boast 200 Bn Yuan Assets
Sources from China National Association of Finance Companies (CNAFC) show that China's finance companies, characterized mainly by their financial services for enterprise groups, have experienced significant development in the financial reform.
At present, China has 70 finance companies with over 2,000 employees and assets exceeding 200 billion yuan, accounting for 30 percent of the gross assets of the country's non-banking financial institutions.
Sources say that since the establishment of China's first finance company was approved by the People's Bank of China (PB0C) in 1987, China has had five finance companies, with 10 billion yuan worth of assets each, and approximately 50 billion yuan for the largest one.
In the past 13 years, China's finance companies have issued a total of 650 billion yuan loans to group enterprises, earning 15 billion yuan of profits and handing in over 4 billion yuan of tax to the State. Currently, 60 finance companies have instituted an internal clearing system. The internal clearing amount is estimated to exceed 3,000 billion yuan. By the end of June this year, altogether 23 finance companies had issued bonds worth 2.4.2 billion yuan for 91 times for group enterprises. Principal valued at 11.8 billion yuan has all been cashed.
By PD Online Staff Du Minghua
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