China Huarong Asset Management has scheduled a second non-performing
loan portfolio auction for mid-December to sell down loans from 22 provincial branches of
Industrial and Commercial Bank of China.
Both international and
domestic investors have shown strong interest in the sale compared with the first auction
held in 1999.
The loans represent an outstanding principal balance of
about RMB 20 billion in 1,300 enterprises.
Huarong, with help from
financial investor Ernst & Young, is performing due diligence work on the portfolio assets.
Goldman Sachs, Morgan Stanley, Lehman Brothers and even banks such
as Standard Chartered have expressed an interest in the auction.