Four major asset management

1999 China established four asset management companies directly under the State Council-China Great Wall Asset Management Company, China Cinda Asset Management Company, China Huarong Asset Management Company and China Oriental Asset Management Company, which are specifically responsible for solving the problem of non-performing assets of China Agricultural Bank, China Industrial and Commercial Bank, China Construction Bank and China Bank of Communications.

According to the Regulations of the State Council on Financial Asset Management Companies, financial asset management companies can purchase non-performing loans from state-owned banks, and manage and dispose of the assets formed by purchasing non-performing loans. Financial asset management companies take preserving assets to the maximum extent and reducing losses as their main business objectives. In asset management and disposal, you can engage in debt recovery, asset leasing or other forms of transfer, reorganization and other activities. Financial asset management companies shall manage and dispose of assets in accordance with the principles of openness, competition and merit. When transferring assets, bidding, auction and bidding are mainly adopted.