China Tackles Bad Debt by Allowing More Asset Firms, News SaysBloomberg News
China is letting provinces set up more asset-management companies to deal with bad loans, China Business News said, citing a notice from the China Banking Regulatory Commission.
China currently has 28 local AMCs, the newspaper says, citing its own calculations. Provinces can now have two local asset-management companies instead of one, the report said. The CBRC will also allow the provincial AMCs to sell bad loans to third parties instead of only being allowed to restructure the debt themselves.
China is grappling with a rising tide of bad loans, with the nation’s biggest lenders set to report the latest numbers this week with their third-quarter earnings.
— With assistance by Jun Luo