Huarong Asset Management has sold a batch of distressed assets of state-owned enterprises to a consortium of foreign companies headed by Morgan Stanley. They paid about 9 per cent of the book value of the US$1.31bn sold. According to the Financial Times, the consortium hopes to recover 20-25 per cent on the US$120m it has paid within two years. Once this happens, Huarong is entitled to 50 per cent of any further money recovered.
China's four asset management firms have a total of Yn1,400bn in non-performing loans for sale.