China to Merge Three Bad Debt Managers Into CIC
(Yicai) Jan. 29 — China intends to incorporate three of its biggest state-owned bad debt managers into sovereign wealth fund China Investment Corporation, according to a report by Xinhua Finance News.
China Orient Asset Management, China Cinda Asset Management, and China Great Wall Asset Management will be merged into Beijing-based CIC in the near future, the report said yesterday.
The other one of the nation’s four so-called ‘bad banks,’ China Huarong Asset Management, changed its name to China Citic Financial Asset Management last week after becoming a subsidiary of state-owned conglomerate Citic Group.
The four were set up in 1999 mainly to dispose of non-performing assets at the state-owned lenders Industrial and Commercial Bank of China, Bank of China, China Construction Bank, and Agricultural Bank of China, and have developed into financial holding firms with multiple related licenses. Huarong and Cinda also listed in Hong Kong.
Founded in 2007, CIC is one of the world’s largest sovereign wealth funds and is charged with investing China’s foreign exchange reserves within an acceptable risk range.
Editor: Martin Kadiev