China Construction Bank (CCB), one of the country's four largest commercial banks, on Sunday announced the 327 million-yuan sale of creditor's rights of an assets package to Deutsche Bank.
This is China's first transaction of a real assets package out of the country, said a CCB official.
Last February the CCB announced it would sell its creditor's rights over three bad assets packages valued at four billion yuan in north, central and south China.
Analysts called the sale a breakthrough for Chinese commercial banks to cope with their bad assets.
The bank received eight applications from various investment institutions. Deutsche Bank purchased the assets package in north China, composed of real estate programs in Heilongjiang Province and Inner Mongolia Autonomous Region. Investment groups headed by Morgan Stanley bought the other two assets packages.
In recent years, the CCB has quickened its step in coping with non-performing loans. Public bidding has become the major way of selling assets confiscated to pay for loans.
(Xinhua News Agency April 11, 2005)
