Fitch rating agency has downgraded four Chinese National AMCs by one notch.
Has placed three on rating watch negative.
Fitch cited their expectations for a reduced level of government support.
***
Chinese National Asset Management Companies (AMCs)
- Also known as the "Big Four" asset management companies
- Were established in the late 1990s to handle non-performing loans (NPLs) of the major state-owned banks in China
- Their primary role was to purchase NPLs from Chinese banks, thereby helping to clean up the banks' balance sheets and improve their financial health
- AMCs then managed these assets, attempted to recover their value, or restructure them as necessary
- Over time, the scope of their activities has expanded beyond managing NPLs.
The initial four were:
- China Huarong Asset Management Co
- China Great Wall Asset Management Co
- China Orient Asset Management Co
- China Cinda Asset Management Co
There are many others.
Fitch Ratings