BRIEF: Cinda sets up $2.7 billion fund to support property market
Bad asset manager China Cinda Asset Management Co. Ltd. (1359.HK) is setting up a 20 billion yuan ($2.7 billion) fund to support China’s struggling property market. China Cinda will provide 10 billion yuan for the fund, while most of the rest will come from its Shanghai-listed Cinda Real Estate Co. Ltd. (600657.SH) affiliate, according to a stock exchange filing by Cinda Real Estate dated Jan. 10.
The fund will provide money to revive stalled real estate projects and could also be used to support struggling developers, including assisting them in bankruptcy reorganizations, according to the filing. But a source told financial media Caixin the money will mainly be used to restart stalled real estate projects that have run into funding problems.
Cinda was one of four national bad asset managers set up by Beijing in the 1990s to help the country’s big state-run banks dispose of some of their worst non-performing assets ahead of IPOs. More recently, the group has also focused on helping with the disposal of distressed real estate assets during China’s property market downturn.
By Doug Young
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