Publish time: Wed Feb 20 09:29:55 CST 2019
“Work together, and Win together” Non-performing Assets Investment Seminar was held in Beijing recently. It was sponsored by Beijing Arbitration Commission/Beijing International Arbitration Center(“BAC/BIAC”) and China Bank Association and jointly organized by Hande Group, Warburg Pincus and China Finance and Industry Research Institute of University of International Business and Economics, which attracted almost 200 researchers and practitioners from including financial policy research circle, national and international finance circle, judiciary circle, state-owned asset management companies (“AMC”), domestic and foreign commercial banks, investment institutions and trust companies.
Mr. Zhiwei Lin, Secretary General of BAC/BIAC, held that the issue of managing non-performing asset is of great significance. How to dispose non-performing assets? How to price them and finally facilitate them? These problems have attracted concerns from the whole industry and even the whole economic circle. With this seminar, BAC/BIAC expected to consolidate cooperation from all aspects of the industry, and to provide better service for dispute resolution amid non-performing asset disposals.
When it comes to the future trend of non-performing assets disposal, Mr. Qin Yu, chief economist of China Orient Asset Management CO., LTD, pointed out the local AMCs shall expand their market shares and cooperate with private AMCs, which are expected to embrace more business opportunities in the future.
Mr. Haibao Wang, president of a private AMC-Han De Dong Hui presented in his speech that as a platform company jointly invested by Hande Group and Warburg Pincus, Han De Dong Hui shared some features in its non-performing assets investments: firstly, various transaction structures and flexible structure designs for non-performing loan transactions; secondly, strong interoperability of financing structure; thirdly, more professional and precise valuation for the underlying assets in non-performing loans. Meanwhile, strategic cooperation with Warburg Pincus empowered Han De Dong Hui with foreign capital opportunities, which would bring a more diversified financing structure in investing non-performing loans.
In investing non-performing assets, the initial target of the participators is to prevent financial risks and revitalize distressed assets. The sponsors expressed that the seminar is mainly to enhance the operation efficiency of non-performing assets (underlying assets) and optimize the high quality assets, for a multi-win situation. The obligation of non-performing asset disposal is to promote the asset value and boost those stagnant urban assets to be more efficient.