Great Wall Asset Management has
teamed up with Chinawe.com to sell some of its bad assets on the
Internet, according to officials at the debt recovery agency.
'We signed an agreement on Tuesday. We will use their e-commerce
platform to sell some of our non-performing assets,' a Great Wall
spokesman said yesterday.
'We are accelerating the process of resolving the assets and
e-commerce could be an effective way,' he said.
Great Wall would post 2,000 to 3,000 assets on Chinawe.com in the
next 18 months to give foreign investors the chance to buy or
invest, company officials said.
They said the assets would be in a wide range of sectors,
including property, electronics and agriculture.
'I still cannot give a value of the assets because we are still
in the process of selecting them,' the spokesman said.
Great Wall would pay commission to the e-commerce company on
completed sales, company officials said. Officials at Chinawe.com
said a first batch of about 100 assets could be posted by May.
Chinawe.com would enable investors to get information on the
selected assets and gradually introduce an auction function allowing
investors to bid online, the spokesman said.
Beijing set up debt-clearing firms Great Wall, Huarong, Dongfang
and Cinda in 1999 to take over and resolve bad assets of the 'big
four' state banks through collection, restructuring, transfer, sale
Great Wall has taken over 345.8 billion yuan (about HK$324
billion) in non-performing assets from the Agricultural Bank of
China, the newspaper said.
China Huarong Asset Management signed an agreement with
accountancy firm Ernst & Young last month to help it market
almost US$3 billion in non-performing assets to foreign investors in
a roadshow in May or June.
Foreign analysts said most debt taken over by China's four asset
management firms would have to be written off, although some Chinese
academics estimated 30 to 40 per cent was recoverable.