Banks ‘seeking to transfer non-performing loans’

Banks ‘seeking to transfer non-performing loans’

Updated: 2013-09-13 15:44

By Yang Ziman (chinadaily.com.cn)

A number of banks, including State-owned establishments, are transferring non-performing loans to asset management companies, the 21st Century Business Herald reported. The transfers will be completed by the end of the third quarter, an employee of an asset management company told the newspaper. A bank based in north China has launched a bid to offload its 747 million yuan ($122 million) bad loans to one of the top four AMCs in the country, the newspaper reported.The package involves 68 debtors, 674 million yuan in capital and 24 million yuan in interest and default interest from six branches in BeijingTianjin, Shanghai and Hangzhou.

Most of the non-performing loans to be transferred stem from small and medium enterprises, particularly those in Jiangsu and Zhejiang provinces.

Zhejiang branches of Industrial and Commercial Bank of China Ltd, the Agricultural Bank of China, Bank of China, Bank of Communications and others are talking to major asset management companies about transferring non-performing loans involving more than 60 packages and 400 to 500 enterprises. Some of these banks have already completed the deal.

Non-performing loans in commercial banks have been on the rise for seven consecutive months, amounting to 539.5 billion yuan by the end of the second quarter, up 46.7 billion yuan from the end of 2012.

The banks are moving tentatively at present, but a wave of transfers may be around the corner, the newspaper reported.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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