CCTV.com - CNTV English - CCTV News

Asset management firms' bigger role in financial market

07-19-2010 13:54 BJT

China has four asset management companies, and all established in 1999, soon after the Asian Financial Crisis. They've since played a crucial role in eradicating bad bank assets, and reducing debt for state owned enterprises. Now the four asset management companies are stepping into a new phase in the financial sector.

In 1999, when the Asian Financial Crisis was beginning to fade, state owned banks had a huge amount of bad assets. So the Chinese government established four asset management companies to dispose bad assets and maintain the stability of the country's financial system.

China Cinda Asset Management Corporation was set up in April 1999, and was assigned to clear bad assets tied to China Construction Bank. Later in October, China Orient, China Huarong and China Great Wall asset management corporation were set up to help out BOC, ICBC and AgBank.

Cai Esheng, Deputy Director of China Securities Regulatory Commission said "Asset management companies are the outcome of responding to the Asian Financial Crisis in the last century."

Tian Guoli, Chairman of China Cinda Asset Management Corp. said "Cinda was set up after the Asian Financial crisis, and in the past ten years, we've play an important role in disposing banks' bad assets, helping them list on the market, and reducing the debt rates of state owned enterprises."

Ten years later, the four asset management companies are stepping into a broader financial market. Now the corporations have more financial licenses like securities, insurance, trustee, and financial leasehold.

To the end of last year, the four companies had purchased or been entrusted to manage 3.5 trillion yuan in bad assets, and have reclaimed more than 500 billion yuan in all.

Related stories

Editor:Xiong Qu |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program