Foreign Buying Jumps in China $1.4 Trillion Bad Debt Market
- Weaker local demand has pushed down prices on China NPLs: DCL
- Foreign investors see more buying opportunities next year
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Foreign investors are increasing their presence in China’s distressed debt market and the timing for them couldn’t be better as tight funding conditions onshore keep local buyers at bay.
International buyers purchased at least 12 non-performing loan portfolios this year, up from nine last year, according to a report by PricewaterhouseCoopers. Special situation funds from Oaktree Capital Group LLC and Bain Capital Credit have boosted activities in sourcing deals while DAC Financial Management, a foreign-owned NPL service provider in China, counts this quarter as the one of the busiest it has had.