New shareholders to help Bank of Jinzhou handle its NPL burden

China is restructuring Bank of Jinzhou Co Ltd, a troubled city commercial bank, by introducing new investors to deal with its nonperforming loans, improve corporate governance, and prevent the triggering of systemic risk.

The Hong Kong-listed bank announced on Sunday that certain shareholders of the bank transferred part of its domestic shares held by them to ICBC Financial Asset Investment Co Ltd, Cinda Investment Co Ltd and China Great Wall Asset Management Co Ltd.

As of Sunday, the domestic shares of the bank being transferred to ICBC Investment, a wholly owned subsidiary of Industrial and Commercial Bank of China Ltd - the country's largest commercial lender, and Cinda Investment, a subsidiary of China Cinda Asset Management Co Ltd - one of the country's four largest State-owned distressed asset managers, shall represent 10.82 percent and 6.49 percent of the total issued ordinary shares of the bank, respectively, said the announcement.