Financial Asset Management Company: Practical Issues in the Disposal of Non-Performing Assets

Author: Yang Kaisheng, Editor-in-Chief
Publisher:
Publish Date: 2004-07-01
Features: It must be admitted that some people doubt whether China's financial asset management companies (AMCs) can perform well or achieve the expected goals of resolving financial risks and reducing final losses. Many often compare China's AMCs with the U.S. Resolution Trust Corporation (RTC), and some have even declared that China's AMCs are inferior to the U.S. RTC. In my opinion, drawing such conclusions now is premature, as some issues need time to become clearer through practice; secondly, a more in-depth investigation and research into the operations of RTC are necessary, avoiding hearsay. Recently, I traveled to the U.S. and visited the executive director of the RTC Asset Sales Office (who was once responsible for nationwide asset disposal for RTC) to seek advice on relevant issues in person. Although I cannot yet claim to fully understand RTC's operations, this meeting has indeed greatly strengthened my confidence. We have every reason to say that in the past two years, China's AMCs have not performed worse than the U.S. RTC!