1. Developing the Asian Markets PRC Experience
David Kidd
Allen & Overy
11 November 2003
ALLEN & OVERY

2. PRC NPLs - the story so far
AMCs (Cinda, Huarong, Great Wall, China Orient) established in 1999
1.4 trillion yuan (US$170 billion) transferred by ICBC, BOC, CCB and ABC
To date 21.5% sold by AMCs
“NPLs cloud Big Four banks”
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3. Resolution issues Legal framework State ownership Real estate
Restructuring culture
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4. Legal framework 1986 Trial Bankruptcy Law 1991 Civil Procedure Law
2002 Supreme Court interpretation
New law in 2004?
GITIC landmark (cf GDE)
Judiciary
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5. State ownership PRC a socialist centrally planned economy
Approval processes are slow
Move towards private ownership and improved corporate governance
Role of SOEs in employee welfare
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6. Real Estate All land owned by state (urban) or collectives (rural)
Allocated/Granted/Leased
Security over tangibles
Enforcement slow
Employee rights
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7. Restructuring experience
GDE/FJE/ITICs/Zhu Kwan
Government support after GITIC
Inertia, indecision and limited local experience (but no dominant family interests)
Must combine international experience with local knowledge through strong servicing vehicles
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