China Huarong Asset Management Corporation (Huarong AMC)
announced Monday that it has finished the handling of
non-performing assets with a book value of 320.40 billion yuan
(US$41 billion) by the end of 2006.
The company said it has retrieved 57.57 billion yuan in cash
from the non-performing assets, or 100.12 percent of the cash-back
task required by the State Council.
Huanrong AMC is one of the four AMCs established in 1999 to
handle a combined volume of 1.4 trillion yuan of non-performing
loans transferred from the biggest four state-owned commercial
banks and the China Development Bank.
Statistics from Huarong show that its cash recovery rate is
17.968 percent, and the company has managed to maintain a low cost
for handling the non-performing assets, which is about 5.57 yuan
for recovering each 100 yuan in cash.
President of Huarong AMC Ding Zhongchi said the next step for
his company is to focus on reforms toward commercialization, i.e.,
to develop into a modern financial corporate group which provides
financial services including asset management, investment banking,
financial lease, warranty and trust businesses.
Sources from the China Banking Regulatory Commission said
earlier that they are mulling over ways to transform the four AMCs
into commercial financial institutions once they finish the
disposal of the non-performing loans.
(Xinhua News Agency February 20, 2007)