Cinda, one of the four asset management corporations (AMCs) set up to dispose of bad loans generated by the major state banks, is to become the first to carry out a securitization, the South China Morning Post reported. A total of US$604 million in non-performing loans (NPLs) will be securitized with US$381 million of these to be sold on the interbank market, while the remainder is to be held back to cover potential losses. The NPLs, which have a face value of US$2.6 billion, were bought from Bank of China in 2004. Cinda has received regulatory approval to carry out the securitization and is now waiting for central bank approval to sell the bonds to other financial institutions. The AMCs were established with a 10-year mandate to resolve NPLs transferred from the state banks. All four are looking to transform themselves into fully fledged financial services companies.