Presented By Mr'Yang Kaisheng President of China Huarong AMC

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Presented By Mr.Yang KaishengPresident of China
Huarong AMC
March 24th, 2004
CHINAS FINANCIAL REFORM and HUARONG AMCS SUCCESS

• The World Bank Group

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1. THE NPL RATIO IN THE FOUR SOCBS
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2. UNRESOLVED NPLS IN THE FOUR AMCS
Note By the end of 2003, the AMCs have resolved
41 of their NPLs,with an average cash
recovery of 19.5.
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3. HUARONG OVERVIEW

• Key Facts
• Founded October 19, 1999
• Capitalization US 1.2 Billion
• Purchased US 50 Billion of NPAs from ICBC
• Corporate Goals Objectives
• Acquire Non-Performing Assets (NPAs) from banks
  and other financial institutions.
• Improve the asset structure of the Chinese
  banking system and enhance its competitiveness.
• Utilize its special legal status and resources to
  achieve asset management efficiency and value
  maximization in the disposition of NPAs.
• Support the continued reform of State Owned
  Enterprises.

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4. HUARONG BRANCH OFFICE LOCATIONS
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5. HUARONG ANNUAL DISPOSITIONS
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6. HUARONG CASH RECOVERIES
Note Huarongs average asset recovery rate is
32.2 and cash recovery rate 21.5.
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7. HUARONG DISPOSITION STRATEGIES

• Huarong utilizes over 20 different resolution
  strategies to maximize the recovery value of its
  NPAs.

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8. HUARONG APPROVAL PROCESS
Headquarter Resolution Review Committee /President
Beyond Branches Authority
Branch Resolution Review Committee /General
Manager
Review by relevant internal sections
Propose Settlement with Borrowers
Resolution Enforcement Payment Collection
Loan Review
Propose Sales to Investors
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9. SIGNIFICANT HUARONG TRANSACTIONS
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Corporate Restructuring International Best
Practices
March 24th, 2004
Thank you!
The world Bank Group

• Yang Kaisheng, China Huarong Asset Management
  Corporation