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China Huarong records 1.42b yuan in revenue

By Bi Xiaoning (chinadaily.com.cn)
Updated: 2009-02-26 18:48

China Huarong Asset Management Corp, one of the four State-owned asset management companies (AMCs), posted revenue of 1.42 billion yuan in 2008 and emphasized that 90 percent of this came from commercial business rather than policy support.

Related readings:  ICBC may take over Huarong Asset  Huarong finishes handling of non-performing assets  Huarong to sell bad debts in New York  Huarong takes over D'long assets

"Most of the non-performing loans we received in 1999 have been sold in the past years and the current balance was about 10 billion yuan. The company made about 70 billion yuan from the deals," a source close to Huarong told China Daily.

On Oct 19, 1999, Huarong was established to deal with about 403.3-billion-yuan in non-performing loans (NPL) from the Industrial and Commercial Bank of China (ICBC).

China has set a 10-year duration for State-owned AMCs. As the date is drawing near, many AMCs have taken action to reform their shareholding system and diversify their business scope.

Huarong now has four subsidiaries, engaged in securities, financial leasing, asset management and real estate development.

"In an economic downturn, the non-performing loans of financial institutions are likely to increase, which offer good opportunities for AMCs like us," said Lai Xiaomin, the company's president.

Last November, it is reported that the AMCs had drafted transformation plans, which said Huarong would increase its registered capital from 10 billion yuan to 19.5 billion yuan, with an ICBC investment of 20 billion yuan. ICBC will hold 48 percent of the shares.