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Forum on China's SEOs' Non-Performing Assets to Open
The Forum on Non- Performing Assets in Chinese State Sector will be held in Beijing on September 19-20.
Attending will be high-ranking government officials, economists worth their salt and senior executives of four Chinese state asset management companies (AMCs). Participants will discuss how to tackle the problem of the non-performing assets in Chinese State-Owned Enterprises (SEOs).
The topics to be discussed will include the ways of dealing with non-performing assets in the Chinese state sector, participation of foreign investors and Chinese private sector, the role of Chinese AMCs and International financing corporation.
The restructuring of state-owned enterprises including commercial banks is considered "essential" to the sustained and sound development of China's economy. How to handle the enormous amount of non-performing assets in the state sector including bad loans of state-owned commercial banks is regarded as a vital link in the restructuring of state-owned enterprises and the reform of the financial system as a whole.
In late 1998, the Chinese government launched a "debt- equity swap"program. Four state asset management companies - - the China Huarong AMC, Cinda AMC, Great Wall AMC, Orient AMC -- were established in 1999. Until now the four companies have taken over a total of 1,400 billion yuan (about 170 billion U.S. dollars) of non-performing assets from SOEs and brought down the average liability /asset ratio of SOEs from 70 percent to 50 percent.
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