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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (2006)	12/15/2003 1:45:02 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Banks line up for worst loans from China By Francesco Guerrera in Hong Kong Published: December 15 2003 4:00 \| Last Updated: December 15 2003 4:00 Banks bidding in this week's ] landmark auction of $3bn of Chinese bad loans have warned that many of the assets are among the worst ever sold by the Beijing authorities. However, bankers say strong competition among some 20 bidders - which include all the major Wall Street investment banks - to win in the biggest sale of bad loans to date, could push the prices above those of previous auctions. The problems range from NPLs secured against rusty, disused factories and machinery, to land that has been mortgaged multiple times, making it hard to determine who has first rights to the property. Wednesday's sale of non-performing loans by Huarong Asset Management, one of the four companies charged with cleaning up the balance sheet of state- owned banks, is crucial to China's efforts to repair its financial system. The Chinese authorities have been criticised by credit rating agencies and foreign investors for being slow in selling off NPLs, which are estimated to total $350bn-$750bn. Banks bidding for the 22 portfolios of NPLs paid $50,000 each to take part in the auction. They include leading US firms Goldman Sachs, Morgan Stanley, CSFB, Merrill Lynch and JP Morgan, as well as big private equity funds and distressed debt houses. news.ft.com