Cinda to do IPO

By Marc Castro

Nov 08, 2013 09:53 AM EST

China Cinda Asset Management had obtained approval for its Hong Kong IPO. According to sources, the said share sale is estimated to be worth USD2 billion. This move would provide insights as to the company, whose main purpose is for government bailout purpose, can become a profit oriented company in the long run.

Many investors had eagerly awaited the details of the share sale of the bad loans management firm. The said IPO is part of the Chinese government's efforts to entice private capital to assist in cleaning up the increasing volume of bad debts in the country's financial system.

Cinda is but one of the four asset management firms the Beijing government had established back in 1999 to absorb the bad loans held by the four biggest banks of China. Cinda is one of the most profitable and the first of the four banks that would be publicly listed. The company disclosures had projected large and steady growth of its operations. 

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