Source |Comprehensive China ** newspaper, etc
RectificationJiugua financial circle.
The four major asset management companies have opened a new chapter!
On January 28, according to Xinhua Finance and Economics, three asset management companies (AMC), China Cinda, Orient Asset Management and Great Wall Asset Management (hereinafter referred to as AMC) will be transferred to China Investment Corporation in the near future.
According to reports, there are relevant people who confirm the above information. "This news has been discussed in the industry for several months, and it has no material impact on the business level at the moment, only a change at the shareholder level. The above-mentioned person said.
After the completion of the equity transfer of Cinda, Dongfang and Great Wall, the original four major AMC companies will turn a new page.
According to the official website, China Investment Corporation (CIC) was established on September 29, 2007 with the aim of diversifying the country's foreign exchange funds and maximizing shareholders' equity within an acceptable risk range, so as to serve the needs of the country's macroeconomic development and deepening the reform of the financial system.
CIC has three subsidiaries, namely CIC International Co., Ltd., CIC Overseas Direct Investment Co., Ltd. and ** Huijin Investment Co., Ltd.
Huarong has been included in CITIC Group
Previously, China Huarong, one of the four major AMCs, has been included in CITIC Group, and on the morning of January 26, 2024, China Huarong completed the name change, and China CITIC Financial Assets was officially listed.
On November 15, 2023, China Huarong announced that it intends to change the company's name to "China CITIC Financial Asset Management Co., Ltd.*** retains the prefix "China", referred to as "CITIC Financial Assets".
On January 25, 2024, China Huarong completed the change of industrial and commercial information and officially changed its name to CITIC Financial Assets.
The announcement mentions:CITIC Group holds 2646% of the shares, is its largest shareholder。The implementation of the name change of China Huarong is conducive to reflecting the positive results achieved in deepening reform and risk reduction, showing a positive spiritual outlook, and establishing a new corporate image; It will help leverage the brand value of CITIC Group to promote business development and further promote its high-quality transformation and development; It is also conducive to highlighting the industry characteristics and license advantages of China Huarong, reflecting the functional positioning of preventing and resolving financial risks and maintaining the stability of the financial system, and highlighting the value of the enterprise.
History of the Big Four AMCs
In the 90s, China's economic system reform, in the process of system transformation, domestic enterprises accumulated a lot of bad debts. Excessive lending by commercial banks has led to a large accumulation of non-performing assets on their balance sheets.
At the same time, in 1999 China accelerated the pace of negotiations on its accession to the WTO, and after China's accession to the WTO, the domestic banking industry will face challenges and competition from foreign-funded banks. In order to promote reform, resolve risks, and learn from foreign experience in dealing with non-performing assets, China established four asset management companies in mid-October 1999Guohuarong, China Great Wall, China Oriental, and China Cinda are commonly referred to as the "four major AMCs"., specializing in non-performing assets.
Among them, China Orient Asset Management Co., Ltd. should receive the non-performing assets of Bank of China, China Cinda Asset Management Co., Ltd. should receive China Construction Bank and China Development Bank, China Huarong Asset Management Co., Ltd. should receive the Industrial and Commercial Bank of China, and China Great Wall Asset Management Co., Ltd. should receive the non-performing assets of Agricultural Bank of China.
At that time, the Ministry of Finance provided 10 billion yuan of capital for each of the four companies, the central bank issued 570 billion yuan of reloans, and AMC was allowed to issue a fixed interest rate of 2 to the corresponding state-owned commercial banks25% of the 820 billion yuan of financial bonds, and use the money to acquire 14 trillion yuan of non-performing assets.
Later, four companies completed the shareholding reformAt the same time, China Huarong and China Cinda were listed in Hong Kong。The four major asset management companies, which were originally planned to be dissolved after only 10 years of operation, have not only always existed, but have successfully transformed into financial holding platforms with the development of the market. It includes financial institutions such as banks, insurance, trusts, and financial leasing.
The largest shareholders of the three AMCs, China Cinda, China Orient and China Great Wall, are all Ministry of Finance.
According to the latest reports, as of June 2023,China Cinda starts with 1With assets of 59 trillion yuan, it has become the largest financial asset management company in China. Since its establishment, it has accumulated more than 3 trillion yuan of non-performing assets, including 1 trillion yuan of financial non-performing assets and 2 trillion yuan of non-financial non-performing assets. Total revenue for the first half of 2023 was 34297.7 billion yuan, a decrease of 169%, net profit attributable to the parent company 40600 million yuan, a decrease of 98%。
Its platform subsidiaries engaged in non-performing asset management and financial services business include: Nanyang Commercial Bank***Cinda**Co., Ltd.***China Jingu International Trust Co., Ltd., Cinda Financial Leasing***China Cinda (Hong Kong) Holdings***Cinda Investment***Zhongrun Economic Development Co., Ltd.
Oriental Assets with 1With assets of 3 trillion yuan, it has become the second largest national AMC among the five major AMCs. It has 10 first-class subsidiaries, including China United Insurance Group Co., Ltd., Dalian Bank Co., Ltd., Dongxing Co., Ltd., China Orient Asset Management (International) Holdings, Shanghai Dongxing Investment Holding Development Co., Ltd., Oriental Qianhai Asset Management, Oriental Bangxin Rongtong Holding Co., Ltd., Oriental Jincheng International Credit Evaluation, Daye Trust Co., Ltd. and Zhejiang Rongda Enterprise Management. In the first half of 2023, the operating income will be 46.1 billion, a decrease of 35% from the same period last year, and the net profit will be 7400 million, down 27% from the same period last year.
The net profit attributable to the parent company of Great Wall Assets is 800 million yuan, and the asset scale in 2021 is 70503.6 billion, since its establishment, Great Wall Assets has acquired and disposed of 2 trillion non-performing assets, and it has 32 branches, including 8 holding companies, including Great Wall Huaxi Bank, Great Wall Guorui**, Changsheng Life Insurance, Great Wall Xinsheng Trust, Great Wall Financial Leasing, Great Wall Investment**, Great Wall International Holdings, and Great Wall Guofu Real Estate.
In terms of CITIC Financial Assets (formerly China Huarong), as of the end of 2022, the company's total assets reached RMB 9,553$2.6 billion. At present, the company has 33 branches, service network throughout 30 provinces, autonomous regions, municipalities directly under the central government and Hong Kong, Macao Special Administrative Region, Huarong Financial Leasing, Huarong Rongde, Huarong Industrial, Huarong International and other subsidiaries.