(Yicai Global) July 27 -- China Great Wall Asset Management, one of the country's big four state-owned asset managers, will bring onboard four strategic investors, including the National Social Security Fund, securing a total investment of CNY12.1 billion (USD1.8 billion).
The Chinese government has approved the Beijing-based company's plan, the China Banking and Insurance Regulatory Commission said in a statement. The National Council for Social Security Fund will invest CNY7 billion, while China Property & Casualty Reinsurance will inject CNY2.8 billion. China Continent Property and Casualty Insurance and existing shareholder China Life Insurance will provide CNY2.2 billion and CNY121 million, respectively.
The firm will use the proceeds to supplement capital to effectively support the company's next business development plans, said Zhou Liyao, president of China Great Wall. The firm will bolster its corporate governance structure in line with the standards of public companies following the introduction of the new investors, the company said.
Great Wall Asset plans to invest CNY120 billion this year to acquire non-performing assets and dispose of CNY100 billion in distressed assets, Zhou said.
The asset manager acquired CNY100.6 billion in non-performing assets during the first half this year, including CNY76.1 billion in financial non-performing assets and disposed of CNY36.2 billion of distressed assets, including CNY26 billion in financial non-performing assets.
Great Wall Asset is the smallest of China's four largest asset management companies in terms of assets.
Editor: William Clegg