China Huarong Asset Management Co Ltd has been officially transformed into a joint-stock company focused on bank-related businesses.
The former state-owned firm is one of China's four asset management companies established to deal with the toxic assets of the Big Four state-owned banks. China's newest joint-stock financial giant said it will develop securities, trust, financial leasing, futures and fund management businesses so as to become a modern financial services enterprise.
The new company has a registered capital of US$4.12 billion with 98.1% held by the Ministry of Finance and the remaining 1.9% by China Life Insurance Company.
Analysts said the transformation paves the way for the company to attract strategic investors and go public via an IPO. They also said China Huarong will introduce both domestic and overseas strategic investors and will go public via an IPO at an appropriate time.
Lai Xiaomin, chairman of China Huarong said that the company will focus on commercial banking, trust, leasing and other banking businesses while continuing to do a good job in asset management.
"We hope potential strategic investors could help strengthen Huarong's business, management, branding and its globalization," Lai said.
China Huarong has accepted, acquired and disposed of toxic assets worth more than US$115 billion to date. It has 32 branches in 30 provincial regions, and operates 10 subsidiary companies in asset management, banking, securities, trust, leasing, futures and other financial businesses.
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