On April 19, 2017, Hanhua Financial Holding (HK3903), a leading inclusive finance group in China, announced in HongKong that, the company, as the main sponsor, and Shenyang Hengxin State-owned Assets Management Group and other enterprises jointly initiated the establishment of Liaoning Fuan Financial Assets Management Company (hereinafter referred to as "Fuan Assets"), with a proposed registered capital of RMB 1 billion. Hanhua Financial Holding was a controlling shareholder, with a total investment of RMB 550 million. Recently, the company establishment was approved by the People's Government of Liaoning Province.

Fuan Assets is mainly engaged in the acquisition, disposal and transfer of non-performing financial assets in Liaoning and it is the second local AMC (assets management company) in Liaoning. Local AMC is known as the local "bad bank". Since its opening in 2013, the local AMC has taken the information advantage of "playing at home", and developed in a coordination manner, making positive contributions to preventing and resolving local financial risks.

In March 2017, the People's Government of Liaoning Province clearly stated in the Implementation Opinions on Further Improving the Quality of Finance Serving the Real Economy that it would promote the disposal of non-performing loans by "attracting private capital to prepare and establish a local assets management company". According to market observers, private financial institutions, with their flexible mechanisms and high-efficient market operation, are expected to further accelerate the recovery and revitalization of non-performing assets and explore innovative treatment models.

The announcement shows that Fuan Assets incorporated innovative models such as debt-to-equity into its business scope. It is learned that following the positioning of "dislocation competition, industry-finance interaction, and resource linkage", Fuan Assets will mainly serve the non-performing assets of micro, small and medium-sized enterprises in local financial and similar financial institutions, and reduce the leverage ratio of enterprises with one-stop full-chain financial services such as debt activation, equity investment management, mergers& acquisition, and financial consultation.

Analysts believe that the establishment of a financial assets management company will, on the one hand, help Hanhua Financial Holding to enrich and extend comprehensive financial services, and on the other hand, help Hanhua grasp the development opportunities of financial assets management market in China under the new normal and further improve its profitability.

Since entering Liaoning market in 2006, Hanhua Financial Holding has served more than 10,000 locally micro, small and medium-sized enterprises, with a cumulative business value of more than RMB 30 billion. In the future, Hanhua Financial Holding will further deepen its cooperation in Liaoning, build "three major platforms" for equity, debt and transaction, improve the service system of inclusive finance, and solve the financing difficulties of micro, small and medium-sized enterprises with a one-stop, full-cycle and ecological high-quality comprehensive financial service system, support the real economy with financial service, and boost the economic revitalization and development of northeastern China.