Cinda agrees bad loan buy-up

Cinda Asset Management Co has agreed to buy US$33.6 billion in non-performing loans from the Bank of China and the China Construction Bank. The move is part of an effort to improve the health of state banks ahead of stock market listings, state media reported. Cinda paid 30% of the loans' value to the banks, a spokesperson said. With China set to fully open its banking sector by the end of 2006, under commitments to the WTO, listing is seen as a key element to boost the strength and efficiency of State banks before the entry of foreign competition.