Looks like Great Wall Asset Management Corp. has a sweet deal backed by the PRC, they buy trouble firms who are cash strapped but have lots of equity, they then sell the firms or inventory, land, businesses, etc. for a profit.
The deal with CHWE looks like it could generate some huge revenues, Wall has plenty of cash to buy these struggling firms and will use CHWE to sell assets or inventory. 1.2 billion company when it first opened, has to be worth much more now, would venture to say CHWE has hooked on to something good, IMO.
english.peopledaily.com.cn
dailynews.muzi.com
cei.gov.cn
New Company to Handle Assets
The newly founded China Great Wall Asset Management Corporation, specialized operator of the non-performing assets of Agricultural Bank of China (ABC), will move debt-equity swap to the top of its agenda, said Great Wall President Wang Xingyi on October 18 at opening ceremony.
The company, the third of its kind after the Construction bank of China and Bank of China, which were unveiled earlier this year. The 10 billion yuan (US$ 1.2 billion) company is a State financial institution with all registered capital coming from the Ministry of Finance, Wang said. Major tasks of Great Wall include purchasing and managing non-performing assets sliced off from ABC, recovering the debts, restructuring enterprises and capital securitization. The company can also sell the debts to foreign investors according to related regulations to cash as many non-performing assets as possible, said Wang. The company will be under the supervision of a committee which includes the Ministry of Finance, People's Bank of China, China Security Regulatory Commission, National Audit Office and ABC. |
