China NPL Report 2003 - FINAL.pdf

TRANSACTIONADVISORYSERVICES2003ANNUALREVIEWNON-PERFORMINGLOANSINCHINA1TABLEOFCONTENTSPreface………………………………………………………………………3Introduction…………………………….…………………….………4HuarongTransactionOverview:China’sPioneerDeal……...5State-mercialBanks……………………………..……..panies…………………………………………..14OtherImportantIssues….……..……………………………………..…20Conclusion………...………………………………………...……22PrefaceBasedontheoverwhelminginterestthatgovernmentThebalanceofthisreportisdividedintotheseprimaryagencies,centralbanks,panies,andsections:foreignnon-performingloaninvestorsexpressedinour–Introductionpreviouspublication,“Non-performingLoanReport:Asia–HuarongTransactionOverview:China’sPioneerDeal2002,”Ernst&YoungispleasedtoissuethisupdatedreportonChina’sdistresseddebtmarketfor2003.–State-mercialBanks–paniesSince2000,Ernst&Younghasbeentheleadingfinancial–OtherImportantIssuesadvisortoChina’smajorbanksandAssetManagement–panies(“AMCs”)intheireffortstoresolvethecountry’snon-performingloans(“NPLs”).Assuch,weAsthecountry’sleadingadvisortobanksandAMCsforNPLhavecollectedaconsiderablecacheofinformationaboutdispositionandmanagementstrategies,Ernst&-performingTheanalysispresentedinthisreportisforinformationassetsinthePeople’,,wedonotexpressanopinionwithrespecttoitsSincerely,-performingloans(“NPLs”)inChina’sbankingRegardlessofthecausesforChina’sNPLs,,China’,pleteitsfullintegrationintotheRMB4,139billion(US$500billion).Ofthisamount,anization(“WTO”).Atthattime,thecountry