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- Xinhua news agency reported on Sunday that plans are underway to bring China Cinda Asset Management, China Orient Asset Management and China Great Wall Asset Management under the jurisdiction of one of the world’s largest sovereign wealth funds by assets. It was reported that this would be realized “in the near future.”
- The Chinese government’s action comes in the wake of a stock market crash amid heightened financial risks stemming from the real estate sector’s debt crisis.
Multiple exposure of virtual abstract financial graph interface on China flag and sunset sky background, finance and trading concept
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China plans to merge three of the country’s largest state-owned bad debt asset management companies with China Investment Corp.’s sovereign wealth fund as part of a system reform plan, state news agency Xinhua reported on Sunday, citing anonymous sources. I quoted it.
Xinhua News Agency reports that plans to bring China Cinda Asset Management, China Orient Asset Management and China Great Wall Asset Management under the jurisdiction of one of the world’s largest sovereign wealth funds by assets are “in the near future.” He added that it would be realized in the future, but did not provide details. .
The announcement, along with another announcement by China’s securities regulator on Sunday to suspend restricted stock lending starting Monday, strengthens the “essential stability” of capital markets and improves market confidence. It underlines the Government’s pledge last week.
The Chinese government’s action comes in the wake of a stock market crash amid heightened financial risks stemming from the real estate sector’s debt crisis. Last week, the People’s Bank of China announced the biggest reduction in mandatory reserves for banks since 2021. It also announced new policy mandates aimed at easing funding shortages for Chinese developers.
The real estate market slumped after the Chinese government cracked down on developers’ heavy reliance on debt for growth in 2020, leading to consumer growth and widespread demand in the world’s second-largest economy. It weighed on my growth.
China’s real estate issues are closely intertwined with local government finances. Local governments typically rely on land sales to developers for a significant portion of their income.
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