Liaoning Fu’an Financial Asset Management Co., Ltd. (Fu’an Asset) was approved for establishment on March 24, 2017 by Liaoning provincial government (LNZ  No. 65), approved for construction preparation on May 8, 2017 (LNJB  No. 35) and for start-up on July 4, 2017 (LNJBF  No. 64) by the Financial Affairs Office of Liaoning provincial government. On January 2, 2018, Fu’an Asset was approved and announced by China Banking Regulatory Commission as the second local AMC in Liaoning Province. It was jointly initiated and established by Hanhua Financial Holdings Co., Ltd. and Shenyang Hengxin State-owned Assets Management Group Co., Ltd.
Based in Liaoning province, Fu’an Asset always keeps the original intentions and mission in mind and assumes responsibilities in mitigating regional financial risks and supporting local real economy. Taking the acquisition and disposal of non-performing financial assets as the core business, Fu’an acquires and manages various types of debt, equity, movable property, and real estate, optimizes resources through a number of disposal approaches such as debt recovery, debt restructuring, corporate restructuring, debt-to-equity swap, and asset securitization. Fu’an Asset is committed to resolving the non-performing assets of local financial enterprises in the aspects of asset acquisition, disposal, operation, and management, and providing professional and quality services for restructuring, industrial integration, transformation and upgrading of entity enterprises.
Driven by innovation, Fu’an Financial Asset has developed into an integrated asset management company with multiple financial service capabilities through optimizing profit model, establishing risk control system and inclusive corporate governance, contributing to financial stability and economic development in Liaoning province.
Development positioning of Fu’an Asset: Revitalizing non-performing assets, optimizing financial ecosystem, enabling enterprise development, serving real economy.
The company acquires non-performing assets from financial and non-financial institutions through market-based approaches. Non-performing assets are operated and managed on a periodic basis, and ultimately disposed in a number of ways including principal and interest collection, litigation recovery, debt restructuring, debt-to-equity swap, asset reorganization, asset leasing, and asset replacement, thereby realizing cash recovery or asset precipitation for asset preservation and appreciation.
Before the acquisition of non-performing assets, the company fully negotiates with the debtor to determine the debt restructuring and debt-to-equity swap plans, and reaches a restructuring agreement with the debtor and relevant stakeholders.
Upon the entrustment of relevant parties, the company conducts due diligence investigation on the target non-performing assets and related assets, assists stakeholders to negotiate with the original creditors and debtors and finally reach an agreement, and organizes the implementation of plans.
After conditional sorting of non-performing assets acquired, the company reorganizes them into asset programs fit for the criteria of securitization, and issues related securitization products to the public. Investors gain returns from debt recovery obtained during the disposal and dynamic management of non-performing asset securitization programs.
The company invests in assets with value-up potential and companies with short-term liquidity issues discovered during the process of operating non-performing assets. By reorganizing the assets or improving the corporate capital structure, management standard and operating conditions, the company promotes the value of non-performing assets and the equity value of the low-performing companies, and ultimately exits the capital market or obtains operating value-added return.
Investment consulting services are mainly personalized services tailored to the financial service needs of companies involved in the assets management business. They include professional analysis, consulting, program design and custody services for joint-stock reform, merger and acquisition, asset reorganization, corporate restructuring, bankruptcy reorganization, corporate financing, financial management and other activities of various companies, aiming to promote the asset management business with investment banking services.
The company collaborates with local government and social capitals to set up special asset fund, special debt-to-equity fund or other types of funds in the area. Through capital operation and management, the funds being managed are mainly invested in various programs related to the extension of special assets, such as the acquisition and disposal of non-performing assets, transformation and upgrading of companies with growth potential and opportunities for transformation, and debt-to-equity swap of enterprises in difficult situations. The company converges capitals from various parties in the form of funds, to consolidate resources and share the special opportunities brought by special assets.