China Finance

Asset

• Asset
• Management Affiliated Bad Loan Companies
• company bank ($ billion) affected (e.g.)
• Great Wall Agricultural $42.86 Hualu Electronic
• Bank of China
• Dongfang Bank of China $32.30 Jiangxi Phoenix
• Optical Appliance
• Cinda China Constr. $45.06 Beijing Cement
• Bank and 5 other Plant
• companies
• Huarong Industrial & $49.17 Ernest & Young
• Commercial Bank helps to sell bad
• of China loans to foreigners
• Source: 11/8/99 and 2/21/01 WSJ

Huarong Asset Management has cleared up 15.06 billion yuan of non-performance as of July 2001. There were to debts sold to foreigners (road show in Europe and US) (5/10/01 FT). Debts are convertible into equity. The asset recovery rate was 31.7% while the Finance Ministry’s standard is 30%.

• Huarong Asset Management has cleared up 15.06 billion yuan of non-performance as of July 2001. There were to debts sold to foreigners (road show in Europe and US) (5/10/01 FT). Debts are convertible into equity. The asset recovery rate was 31.7% while the Finance Ministry’s standard is 30%.
• A total of 16.6 billion yuan in loans were up for auction by Huarong. The consortium agreed to buy four of the five pools of assets (45% being loans collateralised by property and the remainder unsecured (11/30/01 SCMP). The Morgan Stanley-led consortium-- Lehman Brothers, Salomon Smith Barney and Chinese investors Zhongjin Fengde and KTH Capital Management, agreed to buy a 10.8 billion yuan (about HK$10.11 billion) portfolio of bad loans from Huarong.

It is aiming to resolve 407.7 billion yuan.

• It is aiming to resolve 407.7 billion yuan.
• $170 million loans were transferred into 4 AMCs
• 30cents per dollar debt sale will be considered a success.
• Bank of China reports a higher-than- previously-estimated figure. The bad debt ratio is 28% of its assets ($414 billion)- FT 5/14/01