Huarong launches first online exchange for trading bad debt

China Huarong Asset Management Co Ltd, one of China's largest State-owned asset managers, has set up an online platform for bad debt transactions, as part of its efforts to broaden channels for disposal of distressed debt and increase efficiency of transactions.

The new entity, Huarong Zhongguancun Distressed Asset Exchange Co, is the first institution in China that is dedicated to the trading of bad debt and will have a registered capital of 500 million yuan ($80 million).

It opened for business in the Zhongguancun area, which has the largest concentration of high-tech companies in Beijing, on Thursday.