Overview of financial asset management companies

There are two types of asset management companies (AMC) in the international financial market: AMC engaged in "excellent" asset management business and AMC engaged in "bad" asset management business. The former has a wide extension, covering asset management departments or subsidiaries established by commercial banks, investment banks and securities companies, and mainly providing services such as account separation, partnership investment and asset management for individuals, enterprises and institutions. The latter is a financial asset management company, specializing in the disposal of non-performing assets divested by banks.

China Financial Asset Management Co., Ltd. is a wholly state-owned non-bank financial institution established by the State Council to purchase non-performing loans of wholly state-owned commercial banks, and manages and disposes the assets formed by purchasing non-performing loans of wholly state-owned commercial banks. Financial asset management companies take preserving assets to the maximum extent and reducing losses as their main business objectives, and independently bear civil liabilities according to law.

There are four asset management companies in China, namely China Huarong Asset Management Company, China Great Wall Asset Management Company, China Oriental Asset Management Company and China Cinda Asset Management Company, which respectively receive the non-performing assets divested by China Industrial and Commercial Bank, China Agricultural Bank, China Bank and China Construction Bank. China Cinda Asset Management Company was established in April of 1999, and the other three companies were established in June of 1999+00 respectively.