China Great Wall Asset Management Corporation, one of the big
four State-owned non-performing loan dealers, has expanded into
financial leasing business in a move to transform into a commercial
institution.
The corporation launched a financial leasing company, Xinjiang
Great Wall Financial Leasing Co, yesterday after acquiring and
restructuring Xinjiang Leasing Co Ltd with 519 million yuan.
This makes Great Wall the second State-owned financial asset
manager to set foot in the financial leasing business following
China Huarong Asset Management Corporation.
The leasing company, with Great Wall as the sole shareholder,
provides the Stated-owned asset manager another platform in its
commercialization reform process.
The new company will initially focus on finance leasing, provide
asset management services and counseling for customers and other
businesses approved by the China Banking Regulatory Commission,
Great Wall said.
The leasing company inked financial leasing agreements worth 433
million yuan yesterday with seven enterprises including Xinjiang
Guanghui (Group) Investment Co Ltd and Qingdao Meihua Xianxing Real
Estate Co Ltd.
It also signed business cooperation agreements with nine
financial institutions including the Industrial and Commercial Bank
of China, Xinjiang branch.
Great Wall said it will introduce strategic investors into the
new leasing company at an appropriate time.
By inviting strategic investors, the company said, it will build
diverse equity structures for the leasing company, improve its
operation mechanisms and build it into a modern financial
enterprise.
Analysts said Great Wall is well suited to enter the leasing
business.
"Asset managers have advantages in operating leasing businesses
as they have huge client bases and strong liquidity flow," an
analyst said.
With the support of regulators and their nationwide branches and
manpower, the leasing business will become a new tool for asset
managers to diversify incomes and achieve higher profits on their
way to transform into commercial institutions, they said.
(China Daily February 20, 2008)
