CHINA HUARONG APPOINTS E&Y AS ADVISER.
CHINA HUARONG ASSET MANAGEMENT CO. (CHAMC), Beijing, China, has
announced it has appointed Ernst & Young (E&Y) as its exclusive
financial adviser to bring to market a portfolio of nonperforming loans
(NPLs) and assets in excess of US$3 billion. Huarong was formed in
October 1999 by the State Council to purchase, manage and resolve NPLs
of the Industrial and Commercial Bank (the largest of China's
commercial banks). E&Y and CHAMC will work together to bring the
first transaction of its kind to the China market in 2001, according to the companies. E&Y expects to assist CHAMC to market NPLs through a
bulk sale, a real estate portfolio sale, investment in state-owned
enterprises (debt or equity) and an asset-servicing contract in
conjunction with an international asset manager. CHAMC loans cover more
than 20 major industries, including electronics, telecommunications,
petrochemical and real estate.