Foreign, Cross-Border, Privately Negotiated Acquisitions and Dispositions of China’s Non-Performing Loans

Abstract

With the slowdown of China’s economy, opportunities in non-performing loans (NPLs) are expected increase dramatically in the People’s Republic of China (PRC). This article explores how foreign investors may engage in privately negotiated NPL transactions directly with PRC sellers by using domestic trust acquisition vehicles as an alternative to the more heavily regulated public auctions conducted by PRC asset management companies.

TOPICS: Fixed income and structured finance, emerging