Banks start working on China Cinda IPO: report

Four global investment banks have started working on a planned initial public offering by China Cinda Asset Management Corp, expected to take place in Hong Kong later in 2013, IFR reported on Monday, citing sources with direct knowledge of the deal.

Bank of America Merrill Lynch, Credit Suisse, Goldman Sachs and UBS began formally working on the IPO last week, although the banks have no official mandates or roles yet, added IFR, a Thomson Reuters publication.

China Cinda, one of the four asset managers set up to manage bad loans in the late 1990s, hasn't made a final decision on the venue or timing of the deal. If it goes for a single listing in Hong Kong, its application could be filed in August and the deal would happen later this year, IFR said.

China Cinda is one of four giant asset managers set up by China's government in 1999 to remove an estimated 1.4 trillion yuan ($228.4 billion) worth of bad loans from the country's top four lenders in one of the world's largest bank bailouts.

The China Cinda IPO would lead the way for the listing of the three other asset managers, Great Wall Asset Management, Huarong Asset Management and Orient Asset Management.