Foreign and domestic investors are preparing to pounce on bad debts held by Chinese banks—a potentially lucrative but risky area that has disappointed investors in the past.
Specialist investors are starting to raise funds on the expectation that the country’s lenders, under pressure to improve their balance sheets, will soon sell nonperforming loans.
Shoreline Capital Management Ltd, a longtime investor in distressed Chinese debt, raised over $300 million for a new fund at the end of 2012. DAC Management LLC, a hedge-fund firm and another experienced investor in Chinese bad loans, is seeking to raise $300 million for a new China-focused fund. And Fortress Investment Group, a New York private-equity fund that invests in distressed property globally, is looking at buying a small Guangzhou-based company that manages distressed loans on behalf of investors, said people with knowledge of the deal.
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Dinny McMahon and Lingling Wei, Wall Street Journal via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/SUzgIuTqHk8/
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