BEIJING, Feb. 3 (Xinhua) -- China Huarong Asset Management Company has set up an online platform for bad debt transactions to broaden channels for disposal of distressed debt.
The new entity, Huarong Zhongguancun Distressed Asset Exchange Company, is the first institution in China dedicated to the trading of bad debt and has a registered capital of 500 million yuan (around 80 million U.S. dollars), according to China Daily.
It opened for business in the Zhongguancun area, which is known for the concentration of tech firms.
The firm was jointly founded by China Huarong, along with Beijing Qibu Tianxia Technology Company and the State-owned Properties Investment & Management Company of Haidian district, Beijing. China Huarong owns a 58 percent stake.
By introducing online transactions for disposal of distressed assets, the company will be able to promote information sharing on bad debt transactions and make the process more standardized, Huarong said in a statement.
The exchange comes as China channels more energy into addressing bad debts to defuse financial risks.