On June 9, 2010, Beijing Financial Assets Exchange (BFAE) received its first business since its establishment—China Huarong Asset Management Corporation listed in BFAE with a financial asset of 12 billion yuan. The Assets Promotion Conference was held on China Beijing Equity Exchange (CBEX)’s exchange floor on the same day. Xu Zhaohong, vice chairman of Huarong, Wu Ruchuan, chairman of CBEX, and Wang Naixiang, vice chairman of BFAE, attended the promotion conference.

The underlying assets at this conference include the credit assets and the physical assets, which mainly distribute in Hebei. Thanks to the large asset size and the active marketing, nearly 100 institutional investors across the country were attracted to the conference.

It is the first case received by BFAE to deal with non-performing assets. The person in charge from Huarong said it was just the beginning for the cooperation between Huarong and BFAE in asset promotion and the two parties will turn into further cooperation since Huarong managed a total assets of tens of billions yuan. The assets will be promoted in concentrated ways or just by asset marketing. Huarong hopes, by taking advantage of the national professional asset exchange platform of BFAE and conducting all-around marketing, more investors can be attracted; reasonable and market approachable prices for dealing with non-performing assets can be set; the non-performing assets can be dealt with in an open, equal and fair way; the financial claim can be legally safeguarded; and the maximum return of the disposal can be realized.

Xiong Yan, chairman of the board of directors of BFAE and president of BFAE, said that China was home to large amount of financial assets and the stock of financial assets had totaled approximately 130 trillion yuan as of the end of 2009, including not only bonds, shares and securities funds which feature high liquidity and are traded in a standardized way, but also large amounts of financial assets that are tradable but lack of support from an open trading platform. Transactions of these products need to be regulated, so as to enhance liquidity. Such a high financial assets stock creates a strong demand for trading. By 2009, China Beijing Equity Exchange had dealt with total financial assets of 330 billion yuan, accounting for 80 percent of market of the whole sector of the country. Based on this, BFAE is expected to provide an orderly and efficient channel for the transaction of the financial assets.