Of Special Interest


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20th March 2012

StanChart & UBS invest in China Cinda

Standard Chartered and UBS are to acquire minority stakes in China Cinda Asset Management. China Cinda sold a 16.5% stake for Y10.4bn (€1,254m £1,040m $1,645m ¥137.7m Y10,400m). In addition to the two banks mentioned CITIC Capital and the National Council for Social Security Fund also took investment stakes. The size of each stake was not available at the time of writing.

Cinda was formed in 1999 to acquire the bad assets of China Construction Bank. It has subsequently bought other bad debts. The success of the stake sale may encourage other Chinese 'bad banks' to make similar offers. Huarong, the Industrial and Commercial Bank of China bad bank has been granted permission to restructure its ownership into a corporation as a first move in this direction.