China Great Wall Asset Management Corporation, one of the country's biggest distressed debt managers, said it is making a shortlist of strategic investors in preparation for an initial public offering (IPO).

According to Meng Xiaodong, vice president of the firm, the company has been approached by some 200 companies, more than 70 of which are renowned investors.

Meng said once the shortlist is made, it will be subject to approval by regulators.

Great Wall is among China's four asset management companies set up in 1999 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.

In December last year, Great Wall became a joint-stock company with 97 percent of shares held by the Ministry of Finance, 2 percent by the National Council for Social Security Fund and 1 percent by China Life Insurance Company.

In the first nine months of this year, the company had purchased bad assets totalling 129.3 billion yuan (19.63 billion U.S. dollars), a surge of 154.32 percent year on year.

That included financial assets of 73 billion yuan, an increase of 120.17 percent year on year, and non-financial assets of 56.3 billion yuan, a jump of 160.89 percent.

While the size of bad assets has been rising, the growth rate will slow down as a result of a stabilized economy and emergence of new growth engines, Meng said.