This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
CIC Conducts Review on China’s AMCs For Potential Stake Purchase
October 3, 2024
China Investment Corp. (CIC), China’s sovereign wealth fund, is conducting due diligence for acquiring majority stakes in three major bad debt managers: China Cinda Asset Management, China Orient Asset Management, and China Great Wall Asset Management. The Ministry of Finance currently owns majority stakes in these companies and is keen to expedite the transfer to mitigate potential issues. It owns a 58% stake in China Cinda, 73.5% in Great Wall, and 71.55% in China Orient. CIC aims to ensure thorough evaluations before proceeding with the acquisition. Post-acquisition, the Ministry of Finance will retain some management functions, while CIC will oversee operations, shaping the future management framework of these AMCs as they focus on their core business of managing distressed debt. The equity transfer from the Ministry of Finance to CIC is part of a broader reform of the financial system, aligned with the 2023 institutional reform plan. The main goal is to address the longstanding issue of regulatory bodies acting as both overseers and participants in the operations of the AMCs, according to an industry source.
Dollar bonds of these AMCs traded stable with China Cinda’s 5.75 2027s at 101.8, yielding 4.85%.
For more details, click here
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.