Shenzhen-listed company Hainan Haide Industry Co., Ltd. has announced plans to raise up to RMB5.5 billion (US$858 million) from not more than 10 investors to boost its asset management subsidiary, according to its security filing.
In its latest reconstruction moves, household appliances manufacturer Henan Xinfei Electric Co., Ltd., has auctioned its brand equities and fixed assets worth of millions of RMB to look for new investors.
China Cinda Asset Management Co., Ltd，one of China’s Big Four AMCs (Asset Management Company), saw its non-performing asset business grew 29.6% in 2017 to RMB135.5 billion (US$21 billion). Revenues from non-performing assets management expanded faster, up 41.2% year-on-year in 2017 to RMB45.3 billion (US$7 billion), according to its annual report.
DunAn Group, a Chinese precision manufacturing and equipment maker amidst a debt crisis with total outstanding debt of RMB45 billion (US$7 billion), has been aggressively selling assets to reduce debt level.
As China continues to deleverage its corporate sector and manage systemic financial risks, debt-to-equity swap deals are increasingly embraced by state-owned enterprises as an alternative method to reduce their leverage ratios.
China Energy Reserve And Chemicals Group (CERCG), a Chinese energy company, said one of its wholly-owned subsidiaries had failed to pay its US$350 million bond due to "the tightening credit conditions" in China, according to a security filing.
Since a pilot program to explore cross-border transfers of non-performing loans (NPL) was launched in Shenzhen in 2015, approximately RMB6.8 billion (US$1.06 billion) of NPL were transferred as of May 24 in an effort to attract foreign capital to help China better manage its growing pile of bad loans.
Victor Jong, Partner, Advisory Services, PwC, is based in Shanghai and has practiced in the insolvency and corporate reorganization field since 1994. He transferred to PwC’s Shanghai office in 2004 to develop the restructuring and insolvency practice in mainland China. He has advised on numerous debt restructurings, distressed investments, receiverships and liquidation assignments in the Greater China region.
After Lai Xiaomin, party secretary and chairman of China Huarong Asset Management Co., Ltd., was under investigation for Huarong’s financial backing of a private firm, the new Huarong chief Wang Zhanfeng is now launching an inspection on its more than 10,000 employees.
A year after Ping An Bank Co., Ltd. set up its bad loan asset management unit with more than 400 staff in late 2016, the bank reported that it had recovered non-performing assets of RMB9.53 billion (US$1.5 billion) in 2017, up 81.62% compared with the year before.
Shoreline Capital, one of the earliest investors focused on China’s distressed debt market, sees an growing number of Chinese property firms experiencing severe liquidity issues, which would provide new opportunities for distressed debt investors.
Hong Kong’s proximity to China has long been its stronger selling point. But according to a new Fitch Ratings report, it is having a bad influence on the city’s banking sector.
Non-performing loan (NPL) ratio of Chinese commercial banks rose to 1.75% in the first quarter from 1.74% at the end of 2017, marking the first hike since the fourth quarter of 2016.
Hong Kong-based private real estate investment firm Gaw Capital has teamed up with Shenzhen Paladin Asset Management, the investment arm of one of the largest Chinese property developers, Country Garden Group，to jointly launch a US$1 billion special situations fund to invest in distressed real estate projects in China, Gaw Capital confirms to China Money Network.
AVIC Capital Co., Ltd., a financial services provider controlled by the Aviation Industry Corporation of China, Ltd, announced that it will partner with one of the country’s Big Four state-owned asset managers China Great Wall Asset Management Co. and other financial institutions to set up a RMB10 billion (US$1.58 billion) local "bad bank" in Chengdu city.
China’s five largest state-owned banks have seen their bad loan ratio drop last year, as they followed government policies to improve credit quality and accelerate bad loan disposals.
As China Inc. deleverages, corporate bond defaults are on the rise this year. As of May 7, a total of 19 domestic corporate bonds have defaulted, compared to 49 bond defaults for all of 2017, according to Chinese data provider Wind.
A number of local asset management companies (AMC) have turned to bond issuance as an alternative financing method, as these "bad debt" managers vie for a slice of China’s ballooning RMB1.7 trillion (US$289 billion) non-performing loan market.
A Chinese precision manufacturing and equipment maker is in distress with total outstanding debt of RMB45 billion (US$7 billion). Government officials in Zhejiang province, where DunAn Group is based, and creditors have gathered to discuss solutions for the company’s escalating debt crisis.
China has been testing asset-backed securities (ABS) as an alternative method to manage its non-performing assets for more than two years. But as interests among banks to issue new ABS remain tepid, the total issuance size of bad loan-backed ABS dropped last year.
HNA Group is selling a property project in Shanghai to Chinese developer Fujian Group for RMB2.9 billion (US$456 million) to shore up its balance sheet, according to a security filing issued today by HNA Capital, the financial services arm of HNA.
China Orient Asset Management Co. (COAMC), one of the big four Chinese state-owned asset companies tasked with dealing with the country’s bad debt, is planning to raise around RMB100 billion (US$16 billion) to invest in China’s non-performing loans.
Troubled Chinese technology conglomerate Leshi Internet Information & Technology Corp., Beijing(LeEco) appears to have received a much needed capital infusion from some of China’s biggest companies.
There are signs that China’s non-performing loan market is rationalizing, as turnover and prices of NPL portfolios are showing signs of cooling down after a year of hot demand, analysts and investors say.
The Chinese State Commission of the Central Commission for Discipline Inspection has disclosed that Lai Xiaomin, party secretary and chairman of China Huarong Asset Management Co., Ltd., was suspected of serious violation of laws and regulations and is currently undergoing disciplinary review and investigations, China’s Xinhua News Agency reported.
China’s Big Four AMCs (Asset Management Company) have all published their operating performance of 2017, after China Huarong Asset Management Co., Ltd. and China Cinda Asset Management Co., Ltd. reported their results in Hong Kong last week.
Financially-troubled Chinese conglomerate HNA Group Co Ltd. is looking to sell "some or all" of its US$6.3 billion stake in Hilton Worldwide Holdings Inc., according to a regulatory filing by Hilton. HNA, whose holdings range from airlines to hotels and financial services, is rapidly shedding assets to regain financial stability following a two-year, US$50 billion acquisition spree.
China’s booming distressed debt market is generating high returns for the high risks that investors are taking. With an increasing number of players and more capital flowing into the space, the industry is gradually maturing by rewarding those with real local expertise and flushing out others who dream of quick profits.
The China Government Work Report 2018 has emphasized the policy priorities of continuing to eliminate ineffective supply, resolve excess capacity, eliminate low-end capacity, and promote supply-side structural reform with market economy-based measures.
Three of China’s five biggest state-backed commercial banks have seen their 2017 profit growth beating analysts estimates, benefiting from improving economic growth that curbed bad loans and the Chinese government’s efforts to deleverage its corporate sector.
Ansteel Group Corporation and China International Capital Corporation Limited (CICC) have signed a strategic cooperation agreement yesterday to form a joint venture fund tasked to restructure and consolidate the Chinese steel sector.