Cinda bankers confident that IPO will put paid to questions over business model

By Rev Hui
15 Nov 2013

China Cinda Asset Management started premarketing its $2bn-$3bn listing on Monday. If successful, it will be the biggest IPO of the year in Hong Kong, but some market watchers are fretting about the difficulty of assessing the company’s business model. The Cinda of 2013 looks very different to the entity that was set up in 1999 to help tackle China’s Rmb8.9tr ($1.45tr) of bad loans, writes Rev Hui.

The company was one of four asset management firms established by China’s Ministry of Finance to manage the NPLs, along with Great Wall Asset Management, Huarong Asset Management and Orient Asset Management. Cinda’s initial portfolio consisted of Rmb250bn of NPLs from China Construction Bank and another Rmb100bn from ...

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