Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Companies  >  All News

News : Companies
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

China allows asset investment companies to conduct asset management business

share with twitter share with LinkedIn share with facebook
05/06/2020 | 02:20am EDT

China has allowed asset investment companies (AIC) to conduct asset management business to invest in debt-to-equity assets as regulators seek to expand equity financing and reduce leverage in the economy.

China's major state-owned banks including Industrial and Commercial Bank of China and China Construction Bank have set up AICs to conduct debt-to-equity swaps in the past two years, as the country aims to cut leverage especially in state-owned entities and shift risks from banks.

Such AICs can now set up investment plans in market-oriented debt-to-equity assets including convertible bonds, debt-to-equity special bonds, ordinary shares, preferred shares and debt-to-preferred shares, China Banking and Insurance Regulatory Commission (CBIRC) said in a notice on Tuesday.

AICs can raise fund through private fundraising from qualified investors include families with at least 5 million yuan ($705,000) in net asset or individuals with annual income no less than 600,000 yuan in the past three years, CBIRC said. Insurance fund and pension fund can also invest in such debt-to-equity investment plans through AICs, it added.

The move comes as China has been taking a series of measures to expand direct financing via capital markets. Policymakers are carefully balancing the need for liquidity to revive the economy hobbled by the coronavirus pandemic and risks of higher inflation and improving leverage.

Beijing also announced plans last Thursday to create a public market for real estate investment trusts (REITs), aiming to channel personal savings and private capital into infrastructure projects without overstretching already debt-laden local government.

($1 = 7.0881 Chinese yuan)

(Reporting by Zhang Yan and Ryan Woo in Beijing; Editing by Lincoln Feast.)

Stocks mentioned in the article
ChangeLast1st jan.
CHINA CONSTRUCTION BANK CORPORATION -1.84% 6.39 End-of-day quote.-5.05%
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED -1.96% 4.99 End-of-day quote.-16.83%
SEEK LIMITED -0.70% 21.42 End-of-day quote.-5.01%
SHIFT, INC. 13.90% 12780 End-of-day quote.60.15%
share with twitter share with LinkedIn share with facebook
Latest news "Companies"
05:08pPomerantz Law Firm Investigates Claims On Behalf of Investors of Renewable Energy Group, Inc. - REGI
05:00pPomerantz Law Firm Reminds Shareholders with Losses on their Investment in Grand Canyon Education Corporation of Class Action Lawsuit and Upcoming Deadline – LOPE
04:55pNATIONAL BANK : NBP joint action committee stages protest
04:53pEx-Nissan boss Ghosn says helping everyone who stood by him
04:52pPomerantz Law Firm Reminds Shareholders with Losses on their Investment in Brookdale Senior Living, Inc. of Class Action Lawsuit and Upcoming Deadline – BKD
04:33pRENAULT : Hamilton grabs pole position for Styrian Grand Prix
03:59pJUVENTUS FOOTBALL CLUB : Home venues to host champions league, europa's last 16 second leg matches
03:59pSUBARU : I saw pictures of my wife's wedding with another man on facebook, man tells court
03:58pJUVENTUS FOOTBALL CLUB : Champions league final eight draw throws up possible barcelona-bayern clash
02:46pROSEN, A LEADING LAW FIRM, Reminds J2 Global, Inc. Investors of Important Deadline in Securities Class Action First Filed by the Firm – JCOM
Latest news "Companies"