A report released recently under the guidelines of China’s State Council has detailed serious fraud in how some non-performing loans (NPL) are handled in China. By highlighting the illegal activities taking place in China’s booming NPL market, Beijing is signaling an increased focused on stamping out corruption in the market and what measures it will likely take to correct the problem in 2018.
For global alternative investment manager Bain Capital, the first closing of its Asian credit fund at US$557 million came at the right moment. Bain Capital Credit, the credit affiliate of the firm with more than US$35 billion in assets under management globally, is building a war chest in Asia for the first time to tap into maturing distressed debt investment opportunities emerging across the region.
Special Situations Forum: China 2017, hosted by China Money Network in conjunction with KPMG, was successfully held on December 13 at JW Marriott Hotel, Hong Kong, with five prominent speakers discussing investment opportunities and challenges investing in China’s special situations market.
China’s new rules on asset management products will help address the country’s loosely regulated shadow banking system by better managing the growth of banks’ US$4.4 trillion wealth management products, market participants say.
Chinese private equity firm CDH Investments has reaching a first closing of RMB3.2 billion (US$484 million) for its fifth mezzanine fund, Ning Hu, a managing director at CDH Investments told local Chinese medial.
Non-performing “zombie” firms and debt-ridden state-owned enterprises (SOEs) are an increasing drag on China’s overall economy, and fixing them, through deleveraging, reducing government subsidies, as well as operational restructuring could enhance long-term economic growth by 0.7 to 1.2 percentage points per year, according to a new report by the International Monetary Fund.
As China’s economy slows down and local business environment becomes increasingly uncertain, some foreign companies are pulling back from China. Earlier this month, Amazon.com Inc agreed to sell some of its Chinese cloud assets to its local partner, after local laws that mandate the storage of data within the country and increasing competition from local players such as Alibaba and Tencent. American healthcare firm Cardinal Health has agreed this month to sell its Chinese pharmaceutical and medical-products distribution business in …
Two suggestions for distressed debt investors seeking opportunities in China: look beyond the loan books, and work with local asset management companies, according to Jason Bedford, executive director of Asian financials research at UBS, who has studied China’s distressed debt sector for years.
China Money Network’s Special Situations Team brings you the first of our new “Industry Specialist” series, sitting down with Andrew Brown, partner for Macro and Strategy at ShoreVest Capital Partners, Ltd. Hong Kong to seek his opinions on the growth of China’s distressed debt market and the rewards and risks it offers investors in the region. ShoreVest Partners is an institutional private investment firm specializing in Chinese distressed debt and structured credit. The ShoreVest team has managed US$1.6 billion of distressed …
As more Chinese companies go public it’s becoming increasingly clear that many of them have lied about the level of funding they received as private companies, and thus their pre-IPO valuations. The latest example is Rong360 Inc., once listed on China Money Network’s China Unicorn List with a US$1 billion valuation. The company is planning a U.S. listing for its wholly-owned subsidiary Jianpu Technology Inc., raising up to US$200 million, according to its IPO prospectus filed with the U.S. Securities …
As pornography is banned in China, a Taiwanese firm wants to get some skin in the game.
Zili Shao (pictured), J.P. Morgan’s vice chairman of Asia Pacific, has left the bank to start a new distressed debt investment firm to capitalize on an expected expansion of China’s non-performing loans.
It’s hard to predict which new products will take off and which will flop. The Segway was launched in 2001 to much media interest, but quickly became the subject of ridicule and fell into obscurity. Fifteen years later, the “hoverboard” – essentially a Segway without handlebars – somehow became one of the most sought-after Christmas gifts, with hundreds of factories in China churning out the two-wheeled trendsetter.
We live in the age of unicorns. Since the term was coined in 2013 by venture capitalist Aileen Lee to describe start-ups valued at US$1 billion or more, unicorns have multiplied with incredible speed. The unicorn, symbolizing the statistical rarity of such successful ventures, has become almost commonplace. With 193 unicorns globally worth US$664 billion in total*, unicorns also reflect the rise of private capital and investor euphoria over the promise of technology, especially in China.
China’s acquisitive conglomerate HNA Group has become the largest shareholder of Deutsche Bank AG, after increasing its stake in the German banking giant to almost 10%, from 4.8% a month ago.
Andrew Ng (pictured), a vice president and chief scientist at Chinese search engine giant Baidu Inc., is leaving the company to seek new challenges in the use of artificial intelligence (AI) beyond the technology world.
Hedge funds focused on the greater China region posted their first annual loss in five years, with the Eurekahedge Greater China Hedge Fund Index down 4.66% in 2016, after a gain of 10.24% the year before, according to hedge fund data tracker Eurekahedge.
China Huarong Asset Management Co., Ltd., the biggest state-owned Chinese distressed debt management firms, has officially established a financial asset management company in Macau, to support the “One Belt, One Road” initiative, the company announced yesterday.
China is viewed as the most attractive distressed debt opportunities in Asia Pacific, as global investors sharpen their focus on the region after global uncertainties rose post the U.S. presidential election.
A subsidiary of state-owned China Film Group Corporation and Chinese media organization Pegasus Media Group have agreed to establish a US$100 million U.S.-China film production fund as part of a wider collaboration on a range of film and TV projects.
As the U.S. government examines Chinese investors’ inroads in Hollywood, it appears that the American and Chinese film industries are inching toward greater cooperation.
Beijing-based distressed asset manager DCL Investments, a spin-out from China-focused distressed debt firm Shoreline Capital, has raised over RMB3.7 billion (US$500 million) for its debut fund.
Eugene Suh, formerly chief investment officer at Unitas Capital, has joined CVC Capital Partners as partner and Asia chief operating officer based in Hong Kong.
Greater China-focused hedge funds were up 2.20% in August, beating the market while Shanghai Shenzhen CSI 300 Index declined 4.45% during the month, according to date released by hedge fund research firm Eurekahedge.
In this episode of China Money Podcast, guest Wang Lihong, a managing director at Bain Capital, spoke to our host Nina Xiang on the firm’s education investments in China, where the future of online education lies, and potential deals in the Chinese restaurant sector.
There are many precedents of financial systems experiencing significant asset deterioration following sustained periods of above-trend credit growth.
China’s prospective non-performing loan (NPL) securitizations transactions will be challenging for investors and potentially banks themselves due to hard-to-predict cash flows and an uncertain judicial process, says Fitch Ratings.
Following the strong growth in March which was distorted by a low base last year, exports rose 4.1% year-on-year and imports declined 5.7% in RMB terms in April, according to data from China’s customs bureau.
Global private equity firm Apollo Global Management is teaming up with the World Bank’s investment arm IFC to launch a US$1 billion debt vehicle to invest in distressed debt in emerging markets.
The People’s Bank of China Governor Zhou Xiaochuan warned over the weekend that high level of corporate debt could be a macroeconomic risk. But the country’s loan problem is structural and needs to be examined from different perspectives, says a research report by ANZ AG.
Distressed debt fund managers focused on North America and Europe have seen their dry powder increase by US$9.1 billion to a total of US$55 billion at the end of 2015, the largest increase since 2010, says data released by industry tracker Preqin.