In many ways the AMCs represent a profound generation shift in the attitude of the authorities to the problems of NPLs, estimated at $500 billion or 50% of GDP, and the results so far are encouraging.
Huarong AMC, twinned with the Industrial and Commercial Bank of China recently announced it had achieved a cash recovery rate of 32.5% last year after disposing of bad assets with a book value of RMB 23.21 billion $2.83 billion.
Great Wall, twinned with the worst performing bank, the Agricultural Bank of China, achieved a cash recovery rate of 24% from a nationwide auction of RMB 4.8 billion in December. Cinda, twinned with China Construction...
