Shengjing Bank Co., Ltd. (2066.HK)

China's Shengjing Bank in $24 billion deal to sell assets to government-backed entity

Liaoning Asset will fund the purchase of assets by issuing special-purpose notes to the bank, the lender said. The bank, based in the northeastern Chinese city of Shenyang, expects an unaudited provision for impairment of about 7.7 billion yuan, it said, adding that the deal will improve its asset quality and lower non-performing loan ratio. Over 70% of the assets to be disposed are loans and the remainer include asset management plans, corporate bonds and deposits with banks, Shengjing bank said.