The Ministry of Finance (MOF) issued the Measures for the Administration of the Asset Disposal Announcements of Financial Asset Management Companies,the Publication Measures) on July 11, 2008. The Publication Measures provide specific rules to accompany the Measures for the Administration of the Asset Disposal of Financial Asset Management Companies, which were issued by MOF on July 9, 2008 and require that the four state-owned asset management companies (AMCs) publicize certain information before their asset disposals.  

Under the Publication Measures, an AMC must publicize an asset disposal announcement upon the formulation of its disposal plan. The announcement must contain (1) a description of the assets, including the name, type, location, value, and quantity, and any relevant mortgage or guaranty; (2) the AMC’s intent to dispose of the assets; (3) the AMC’s solicitation of inquiries or demurral for the asset disposal project (items), and the applicable deadlines; (4) requirements on the other transaction parties and terms of transaction; and (5) the channels to report any interference with the inquiries or demurral.  

According to the Publication Measures, the asset disposal announcement requirements apply to AMC-purchased non-performing loans (NPLs) and any other assets that it may lawfully dispose of. These assets include, but are not limited to: NPLs and their interests, equity interests held by AMCs through debt-to-equity swaps or other means, in-kind assets, and intangible assets.  

An AMC must publicize the asset disposal announcement on its Web site, in a newspaper, or both, depending on the value of its assets. For assets worth RMB10 million or less, an AMC may publish its announcement seven days before the AMC’s examining division examines the plan. For assets worth more than RMB10 million, however, the announcement must be published both on line and in a qualified newspaper 10 to 20 days (depending on the value of the assets) before the AMC’s examining division examines the asset disposal plan.  

An AMC is not required to announce its asset disposal if the disposal is concluded according to a court judgment or a bankruptcy, or if the disposal concerns projects that the state considers inappropriate for public disclosure, such as projects that involving national security issues.