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Foreign Investors Welcome to Buy Non-performing Assets in China
China's central bank governor said Thursday that foreign inventors are welcome purchase non-performing assets sold in China and the money they spend in this purpose will be regarded as foreign direct investment.
Dai Xianglong, governor of the People's Bank of China, made the remark at the 2001 Non-performing Loans International Forum, which opened Thursday in Beijing.
The Chinese government will protect foreign investors' rights to operate the non-performing assets they buy in accordance with the laws, he said.
China is in great need of exchanges with overseas assets management corporations as it started to handle non-performing loans only a few years ago and a lot of problems remain unsettled, he added.
The Chinese government set up four assets management companies in 1999, named Cinda, Huarong, the Great Wall and Oriental. They handle the non-performing assets bought from the four big state-owned commercial banks and the State Development Bank.
The four companies have bought 1,393.9 billion yuan (167.9 billion U.S. dollars) in non-performing assets from those banks so far, of which about 93 billion yuan has been disposed of and 37.7 billion yuan has been recovered.
Dai said the central bank will create an environment and conditions favorable for the assets management companies to play a better role.
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