China Construction Bank Corporation (0939) proposed yesterday to spend 12 billion yuan (HK$13.4 billion) to establish a wholly-owned subsidiary, CCB Asset Management Co, that will take charge of converting debts into shares.
“CCB AMC is proposed to specialize in market-driven debt-to-equity swap business and will mainly operate and conduct financial business, such as acquisition of relevant debt rights, equity investment, converting debt into equity, holding, managing and disposing equity in debt-to-equity swap enterprises,” the lender said in a filing to the local bourse.
The bank said the investment will be funded by its own capital.
But it also warned that the investment faces risk as it still awaits approvals from the rele…
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