Tools: Save | Print | E-mail | Most Read
China Issues Securities for Non-performing Assets
Adjust font size:

On Monday two Chinese state-owned asset management companies issued a total of 3.7 billion yuan (US$474 million) of asset-backed securities (ABS) for non-performing assets. The ABS issuance was approved by the People's Bank of China and the China Banking Regulatory Commission (CBRC).


This is the first time China has issued securitized products for non-performing assets and also the first move into the non-performing assets sector since the China Development Bank and China Construction Bank issued ABS last year.


China Cinda Asset Management Corp. issued three-billion yuan of ABS and the China Orient Asset Management Corp. 700 million yuan. The ABS can be traded in the inter-bank bond market and all investors in the market can invest in the newly issued securities.


Experts say the issuance of this type of security would make the handling of non-performing assets more efficient, stimulate the market and help reduce risks in the financial system.


According to CBRC statistics the country's four state-owned asset management companies of China Huarong Asset Management Corp., China Great Wall Asset Management Corp., Cinda and Orient had handled a total of 866.3 billion yuan of non-performing assets by the end of March. Approximately 180.5 billion yuan was retrieved which is 20.84 percent of the total.


(Xinhua News Agency December 19, 2006)

Tools: Save | Print | E-mail | Most Read

Related Stories
Mutual Fund Mania Sparks Warning from Regulators
Watchful Eye Aims to Keep Brokers Honest
30 Securities Firms Enter Bankruptcy Proceedings
Scandals Cloud Shanghai Stock Market Rally
A-share Market Faces Fundamental Change
Overseas Securities Investments Soar in First Half Year
Broker Chases Listing with Buyout Plan
WTO Commitments Fulfilled on Opening Securities Market
Private Foreign Currency to Be Invested Abroad

Product Directory
China Search
Country Search
Hot Buys
SiteMap | About Us | RSS | Newsletter | Feedback
Copyright © All Rights Reserved     E-mail: Tel: 86-10-88828000 京ICP证 040089号