皇冠体育app

Orient AMC gets rid of bad loans
By Zhao Renfeng (皇冠体育app Daily)
Updated: 2005-04-19 08:53

皇冠体育app Orient Asset Management Corporation announced yesterday it will promote a 50 billion yuan (US$6.02 billion) tranche of non-performing loans (NPL), the company's largest ever sale, to foreign and domestic investors.

The NPL disposal, also the largest by any of the four State-owned asset management companies, indicates that 皇冠体育app is accelerating the settlement of distressed assets and providing further investment opportunities.

"For international investors, it is clearly a good sign as it's a step further by 皇冠体育app's asset management companies," Michael Harris, a partner at PricewaterhouseCoopers, told 皇冠体育app Daily yesterday.

According to Li Xin, general manager of the asset management department of 皇冠体育app Orient, this round of NPL disposal mainly comes from the inventory the company acquired from Bank of 皇冠体育app in 2000.

A total of 61 asset pools were promoted yesterday, involving companies engaged in the foreign trade, property and machinery-building industries in more than 20 provinces.

The biggest pool amounts to more than 4 billion yuan (US$480 million). Li said this will provide investors with flexibility and choice.

Nineteen investors signed letters of intent with 皇冠体育app Orient yesterday for 10 asset pools, including Deutsche Bank, Morgan Stanley, Credit Suisse First Boston and Galaxy Securities.

Many investors anticipate the flow of NPL transactions to grow in the coming years as many Chinese commercial banks are under pressure to settle the huge burden of distressed assets and get ready for overseas listings.

According to Mei Xingbao, vice-president of 皇冠体育app Orient, 皇冠体育app's NPL market totals approximately 2 trillion yuan (US$240 billion), in which 皇冠体育app Orient now has 430 billion yuan (US$51.8 billion).

Harris said 皇冠体育app Orient's promotion is welcomed by foreign investors, who are eager to make even more sizeable investments in 皇冠体育app's NPL market.

He said 皇冠体育app's sellers need to offer more investment opportunities to attract international investors.

By the end of March, 皇冠体育app Orient and its three State-owned peers - 皇冠体育app Huarong, 皇冠体育app Cinda and 皇冠体育app Great Wall - disposed of a total of 688.55 billion yuan (US$82.95 billion), according to a statement released yesterday on the website of the 皇冠体育app Banking Regulatory Commission.

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