ABC Establishes RMB500m AMC Fund in Shanghai

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Harold Hsu

Published at 2018-08-10 08:31

Summary

Agriculture Bank of China (ABC) [1288:HK] has set up an asset management (AMC) fund with a registered capital of RMB500m in Shanghai, as reported by Caixin on August 9. The report said the business of the bank's AMC private equity fund is mainly GP (general partner), which is a debt-to-equity fund. In China, entities must set up a debt-to-equity fund in order to perform debt-to-equity swap deals. ABC will be the manager of these funds.

Analysis

As early as in November 2016, ABC had already announced plans to establish a wholly-owned subsidiary, ABC Asset Management (ABC Asset) in Beijing with a total capital contribution of RMB10bn, which was proposed to specialize in debt-to-equity swap

Harold Hsu
Analyst