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The China Construction Bank and the Bank of China sold over US$30 billion in bad assets to China Cinda Asset Management Company. The signing ceremony was held in Beijing Wednesday afternoon.
This was the latest sale to help the two state-owned banks dispose of their non-performing loans, and some analysts believe it may also be the last time.
Cinda will pay the two banks around US$10 billion over a three-year period. That means the banks will recover 30 percent of the bad assets, which is actually higher than the average of the country's four biggest state-owned banks.
In contrast to previous disposals of bad assets, Cinda won the deal through a public bidding process. The central bank will help Cinda with financing.
(CCTV.com June 30, 2004)
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