Who should take the responsible for the fire sale of state-owned assets?

Asset management companies who always been blamed is accused to cheapen the state-owned assets. According to the report, the Great Wall Asset Management Corporation made a deal of 18 million Yuan asserts valued 1.8 billion Yuan in account price. One of the guarantors sued this case to the court and the police started to investigate.

The concern of public turn to the state-owned asserts again, and they worry about whether the huge amount of non-performing assets in China can be reserved maximum. The answer is, it would not have any optimistic predict as the restrict conditions.

The highly asymmetric of information and the Popsicle Effect caused the trend of require the speed only and the risks of moralistic issues during the management of non-performing assets. Therefore, those deficiencies in nature of the management should have the credible institutions of corporate governance and market. Unless, relying on the mechanic mends would never escape from embarrassing, no matter the supervisors or the people who been supervised.

Source: People’s Daily Online

Translated and edited by Yang Jingmin

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