See "The Failure of GITIC
", Fitch IBCA, November 1998, for a good description of the background of the trust and investment companies in China, and "Bankruptcy of GITIC
", Fitch IBCA, January 11, 1999, for a detail description for the debacle of GITIC
Overall, most creditors are expected to recover about 34% of their claims on the failed GITIC
They were also informed they may receive part of their claims against the collapsed fund-raising "window company" of the Guangdong provincial government at their next meeting, according to a foreign banking source who attended a briefing Friday by GITIC
's liquidator in Guangzhou, southern China.
He said the latest estimation of GITIC
's recoverable assets will be disclosed at a creditor meeting set for Tuesday in Guangzhou.
was a nonbank financier in Guangdong Province and one of the southern province's biggest fund-raising institutions.
The "lawful, reasonable and fair" decision to allow GITIC
to go under was an individual case in the course of China's financial reform, Zhu told a press conference.
) last year, Dai said bad loans amount to about 10% of total loans outstanding.
BEIJING, March 11 Kyodo The head of China's central bank said Thursday investors in the failed Guangdong International Trust and Investment Corp.(GITIC
) will be treated exactly the same as Chinese investors.
Tsang Yok-sing, CPPCC member and head of the Democratic Alliance for the Betterment of Hong Kong, said in a statement received in Hong Kong that he told the CPPCC meeting the bankruptcy of GITIC
has widely affected China and Hong Kong.
2 Kyodo The Bank of East Asia, one of the most aggressive Hong Kong banks in the China market, said Tuesday loan-loss reserves for 1998 increased five times due to the write-off of loans to the collapsed Guangdong International Trust and Investment Corp.(GITIC
) and an increased risk for loans to Chinese companies.
The governor of China's central bank said Wednesday a meeting will be held at the end of April to discuss the repayment of defaulted loans by the bankrupt Guangdong Internatinal Trust and Investment Corporation (GITIC
) is an indication of the Chinese government's resolve to persevere with financial reform, the Foreign Ministry spokesman said Thursday.