Chinese asset management firm Cinda plans $3-bn IPO
15 Mar 2013
China Cinda Asset Management Co Ltd (originally China Cinda Asset Management Corporation), one of four giant asset funds set up by China in 1999 to clean up bank balance sheets by transferring bad banks loans to these entities, has planned a $3-billion initial public offer in Hong Kong for $3 billion, Bloomberg reported today.
In March 2012, Cinda had roped in four new strategic investors - UBS, Standard Chartered, Citic Capital and the National Social Security Fund - to raise 10.4 billion yuan ($1.6 billion), through sale of a 16.5-per cent stake.
Cinda is one of the four giant asset funds set up by China in 1999 to remove bad loans from China's top four lenders.
Each asset fund was asked to take over the bad loans of one bank each and Cinda was allotted China Construction Bank.
The other three asset managers were Orient Asset Management, Great Wall Asset Management and Huarong Asset Management.
China's ministry of finance holds an 83.5-per cent stake in Cinda, while National Social Security Fund holds 8 per cent stake, UBS 5 per cent and Citic Capital Holdings Ltd 2 per cent and Standard Chartered Plc 1.5 per cent as revealed in the prospectus for the bond issue published in October 2012.
Cinda, which was restructured on 29 June 2010, is China's first financial asset management company under approval from the State Council.
Cinda's listing plan is in line with its ambitions of emerging a full-fledged financial services company.
China Cinda Asset Management Co Ltd has a registered capital of RMB 30,140,024,035. The company has 31 branches and a number of subsidiaries across China, which include First State Cinda Fund Management Co Ltd, Cinda Securities Co Ltd, Happy Life Insurance Co, Ltd, Cinda International Holdings Limited, Cinda Investment Co Ltd, Well Kent International Holdings Company, etc.
With strong support of relevant state authorities, China Cinda Asset Management Company Ltd has gradually built up a powerful ''Cinda-backed'' financial holding platform.