Analysis

After years of diversifying into financial services, and then into the less regulated wilds of shadow banking, China’s big four asset management companies (AMCs)—Cinda, Huarong, China Orient, and Great Wall [1]—are now being forced by the government to reorient their priorities back toward nonperforming loans (NPLs). The AMCs have built up significant financial resources over the years, but a diminishing share… READ MORE

In 2014, the China Banking Regulatory Commission (CBRC) started approving the establishment of local asset management corporations (AMCs)—otherwise known as bad banks—to compete alongside the Big Four AMCs (Cinda, Huarong, China Orient, and Great Wall) that had been operating at the national level since 1999. Although the new provincial AMCs were granted the right to buy batches of nonperforming loans… READ MORE