China on Thursday started its biggest sale of bad loans, inviting Citigroup, Morgan Stanley and other companies to bid for assets valued more than 18 billion US dollars.

Great Wall Asset Management, which disposes of non-performing loans for Agricultural Bank of China, is selling all its distressed assets, with a face value of 150 billion yuan.

The sale may be completed in June after letters of intent are signed in March.

Overseas investors previously purchased loans in China valued at 33 billion yuan, or 4 billion US dollars.

Clearing bad loans is essential for Chinese banks as the nation prepares to give overseas competitors greater access at the end of 2006.

(CRI November 26, 2004)