China's Bank Asset Management Companies: Gold in Them Thar Hills?

China's Bank Asset Management Companies: Gold in Them Thar Hills?

China's Bank Asset Management Companies may be goldmines for foreign investors, but it's unclear how they can uncover the wealth of the Bank AMCs. David Pierce and Lawrence Yee look at the situation regarding Bank AMCs and the legal, political and business issues involved with foreign participation in these state-dominated businesses.

We¡¯ve seen a flurry of activity in recent months centred on the asset management companies (AMCs)1 established two years ago to deal with troubled assets held by China's four largest state-owned commercial banks (SOCBs).2 Announcements of joint ventures with foreign asset managers, appointment of Big Five accounting firms as financial advisers, plans for auctions and high-profile international road shows by teams from the Bank AMCs have all aroused new interest among foreign investors.3