Regulations on Financial Asset Management Companies

Regulations on Financial Asset Management Companies

Order of the State Council [2000] No.297

November 20, 2000

Chapter I General Principles
　
Article 1 This Regulation is formulated in order to regulate the activities of financial asset management companies, deal with the non-performing loans of the state-owned banks according to the law, and promote reform and development of state-owned banks and state-owned enterprises.
　
Article 2 Financial asset management companies shall refer to wholly state-owned non-bank financial institutions established by the State Council to purchase non-performing loans of state-owned banks, manage and dispose the assets derive from them.
　
Article 3 The main business objective of financial asset management companies is to preserve assets and reduce losses to the utmost degree, and they also bear civil liability independently according to the law.
　
Article 4 The People's Bank of China, the Ministry of Finance and the China Securities Regulatory Commission implement supervision over and management on financial assets management companies in accordance with their respective statutory duties.

Chapter II Establishment of the companies and business scope
　
Article 5 The registration capital of a financial asset management company is 10 billion Yuan, which is appropriated by the Ministry of Finance.
　
Article 6 Financial asset management companies shall acquire the Financial Institution Legal Person Permit from the People's Bank of China and register in the industrial and commercial administrative departments according to law.
　
Article 7 To set up a branch, a financial asset management company shall, under the consent of the Ministry of Finance, report it to the People's Bank of China for approval. A Business Permit of Financial Institution shall be issued by the People's Bank of China and the company shall register it in the competent industrial and commercial administrative department according to law.
　
Article 8 There shall be one president and several vice presidents in a financial assets management company. The president and vice presidents shall be appointed by the State Council. Externally, the president exercises his authority on behalf of the financial asset management company and be responsible for the operation and management of the company.
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