BEIJING -- China's fifth national asset-management company opened for business on Jan 9 and joined its four predecessors established in 1999 to handle distressed assets, Shanghai Securities News reported.

This came after the company received an operating permit in December 2020.

China Galaxy Asset Management Co Ltd morphed from Beijing-based Jiantou Citic Asset Management Co Ltd with its transformation and name change approved in March 2020, the China Banking and Insurance Regulatory Commission said last month.

With a registered capital of 10 billion yuan ($1.55 billion), China Galaxy will deal with business such as the acquisition and entrusted operation of the non-performing assets of financial institutions, along with the management, investment and disposal of non-performing assets.

In 1999, China established four asset-management companies -- Cinda, Huarong, Great Wall and Orient -- to deal with the toxic assets of the country's four big state-owned banks, in a bid to help them transform into market-oriented financial institutions.

The four companies finished their state-assigned task of dealing with toxic assets in 2006, and have since developed into financial groups operating in fields such as banking, trusts and insurance.