The four asset management companies created in 1999 to take on the bad loans of China’s big four banks managed to sell 9 per cent of their total bad loans in 2001. About Yn1,400bn is technically for sale by the four asset management firms.
In December, a second consortium involving foreign banks bought a batch of non-performing loans. The consortium including Goldman Sachs paid 10 per cent of the face value of US$140m in non-performing loans – about 1 per cent more than a consortium led by Morgan Stanley paid in November.