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Asset Management Firm Seeking Investors
The Great Wall Asset Management Corporation of China has announced that it would offer 120 new asset investment projects to investors at home and abroad.
With a total value of 12.7 billion yuan (1.5 billion U.S. dollars), the projects cover 19 industries including energy, telecommunications, petrochemical, biomedicine and marine fishery.
Wang Xingyi, president of the company, said the move is part of a strategy to handle bad assets and assure that investors' profits will be guaranteed.
According to Wang, his company has taken over 345.8 billion yuan (42 billion U.S. dollars) worth of bad assets from Agricultural Bank of China, which were bad loans some state-owned enterprises owed to the bank.
Since last year, the company has completed 225 asset restructuring projects, involving a total value of eight billion yuan (nearly one billion U.S. dollars), and recovered assets valued at over four billion yuan (482 million U.S. dollars).
Financial experts say the fact that asset management companies acquire, manage and handle bad assets of state-owned banks will help banks improve their credit standing by reducing the amount of non-performing loans.
It also benefits the reform of China's state-owned enterprises, the mainstay of the Chinese economy.
China now has four asset management companies, which last year took over bad loans totaling some 1.39 trillion yuan (167 billion U.S. dollars) from state-own banks and helped them cut their bad loan ratio by 9.7 percentage points.
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