The widely concerned debt-to-equity program has made a breakthrough. At present, acquisition of non-performing assets has basically completed and disposal of these assets has come to the substantial stage.

The debt-to-equity program is aimed at stripping non-performing assets from the state banks. To date, the four asset management companies, China Cinda, Orient, Great Wall and Huarong, have taken over from the state banks non-performing assets totaling 1393.9 billion yuan and 587 enterprises have signed agreements for the swap involving 340 billion yuan.

It is learnt the four asset management companies, set up separately last year, have explored various ways in asset disposal. They have established an array of mechanisms for acquisition, management and disposal of non-performing assets and had finished take-over of these assets during the first half of this year.

According to statistics, up to now, 169 enterprises have sealed accords for debt-to-equity swap led by Cinda, involving 154.5 billion yuan; 65 by Orient, 63.9 billion yuan; 2 by Great Wall, 12.5 billion yuan; and 333 by Huarong, 1100 billion yuan.

These enterprises are large and medium-sized state-owned enterprises covering light industry, textile, construction, transportation, energy, machinery, metallurgy and real property.

(People's Daily 12/05/2000)