Chinas so-called bad banks are thriving as alternative lenders, evolving from bad-debt managers into some of the countrys largest financial conglomerates just as margins at the big state-owned banks come under pressure.
Chinas four centrally controlled asset management companies (AMCs) were set up in 1999 to swallow toxic assets from banks, and have had their assets grow expansively over the past five years.
Assets at Cinda Asset Management Company, which reported earnings last week, rose 360 per cent to Rmb1.1tn ($160bn) between 2012 and 2016, a period in which it bought a Hong Bank bank for $8.7bn and collected a suite of financial licences for businesses such as securities broking, insurance, trusts, and leasing.
The four group…
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