China Orient Asset Management Secures USD2.9 Billion in Strategic Investments

China Orient Asset Management Secures USD2.9 Billion in Strategic Investments

Liao Shumin

Date: Fri, 04/20/2018 - 11:26 / source:Yicai
China Orient Asset Management Secures USD2.9 Billion in Strategic Investments
China Orient Asset Management Secures USD2.9 Billion in Strategic Investments

(Yicai Global) April 20 -- China Orient Asset Management Co. (COAMC), one of the country’s big four state-owned asset companies, has secured new strategic investments totaling CNY18.0 billion (USD2.9 billion) from the National Council for Social Security Fund, China Telecom Corp., China Reform Holdings Corp. and Shanghai Electric Group Co.

The combined equity holdings of the four strategic investors in the company account for less than 20 percent of total share capital, with individual stakes ranging from about 6 percent to 2 percent, said Jiang Yueming, COAMC director of strategic investment and listing, at a press conference in Beijing.

The company also plans to invest CNY100 billion in non-performing loans this year, Board Secretary Jianxiong Chen added at the conference.

COAMC became the third major state-owned asset management companies to complete shareholding system reform in October 2016, and the firm is expected to speed up its listing process after bringing the strategic investors onboard.

The new investment comes at a time of increased regulatory scrutiny in the asset management sector. Allegations emerged on April 17 that Lai Xiaomin, party secretary and chairman of China Huarong Asset Management Co., the country’s largest state-owned firm in the sector, has seriously violated laws and is currently under investigation for graft.

Set up in 1999, COAMC has been tasked with dealing with bad assets related to the country’s big four state-owned commercial banks. Last year, it posted a net profit of CNY12.4 billion, up 38 percent annual, with a compound annual growth rate of 26.5 percent over the past five years. The company's consolidated assets on its balance sheet totaled CNY980.3 billion as of the end of last year, up 21.7 percent annually.

Editor: William Clegg

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Keywords: China Orient Asset Management Co., China Cinda Asset Management Co., China Huarong Asset Management Co.