Others News
- China's AMCs launch securities companies
Date: 21-Sep-2007 Sources: (Xinhua Online)
BEIJING, Sept. 20 (Xinhua) -- China Huarong Asset Management Corp. (Huarong AMC), one of China's four state-owned asset management corporations, has announced the debut of its securities company.
The company, also named 'Huarong' and jointly established by Huarong AMC and China Gezhouba (Group) Corporation, will be the first securities company established by China's four big asset management corporations.
Zheng Wanchun, chairman of Huarong securities, said the firm's registered capital was 1.51 billion yuan (200.8 million U.S. dollars) with Huarong AMC holding a 99.34-percent stake and Gezhouba 0.66 percent.
China's four AMCs -- Huarong, Cinda, Orient and Great Wall -- were established in 1999, to handle a combined 1.4 trillion yuan of non-performing loans transferred from the big four state-owned commercial banks, the product of reckless loans to state-owned enterprises over years.
Huarong AMC announced earlier this year that it had finished the handling of non-performing assets with a book value of 320.4 billion yuan by the end of 2006 and then launched its reform to become a commercial financial corporate.
Huarong AMC president Ding Zhongchi said the reform focused on developing Huarong AMC into a modern financial corporate group, providing financial services including asset management, investment banking, financial leasing, warranties and trust businesses.
The Huarong securities company has 21 business outlets and eight services departments in Hunan, Hubei, Sichuan provinces, Xinjiang Uygur Autonomous Region and Beijing, Shanghai, Tianjin and Chongqing municipalities.
Brokerages have enjoyed booming business as China's share markets more than doubled in value this year.
Huarong and Cinda AMCs were licensed by the China Securities Regulatory Commission to open securities companies on Sept. 3. The securities company of China Orient Asset Management Corporation is expected to be established at the end of this year.
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