Troubled Chinese technology conglomerate Leshi Internet Information & Technology Corp., Beijing(LeEco) appears to have received a much needed capital infusion from some of China’s biggest companies.
There are signs that China’s non-performing loan market is rationalizing, as turnover and prices of NPL portfolios are showing signs of cooling down after a year of hot demand, analysts and investors say.
The Chinese State Commission of the Central Commission for Discipline Inspection has disclosed that Lai Xiaomin, party secretary and chairman of China Huarong Asset Management Co., Ltd., was suspected of serious violation of laws and regulations and is currently undergoing disciplinary review and investigations, China’s Xinhua News Agency reported.
China’s Big Four AMCs (Asset Management Company) have all published their operating performance of 2017, after China Huarong Asset Management Co., Ltd. and China Cinda Asset Management Co., Ltd. reported their results in Hong Kong last week.
Financially-troubled Chinese conglomerate HNA Group Co Ltd. is looking to sell "some or all" of its US$6.3 billion stake in Hilton Worldwide Holdings Inc., according to a regulatory filing by Hilton. HNA, whose holdings range from airlines to hotels and financial services, is rapidly shedding assets to regain financial stability following a two-year, US$50 billion acquisition spree.
China’s booming distressed debt market is generating high returns for the high risks that investors are taking. With an increasing number of players and more capital flowing into the space, the industry is gradually maturing by rewarding those with real local expertise and flushing out others who dream of quick profits.
The China Government Work Report 2018 has emphasized the policy priorities of continuing to eliminate ineffective supply, resolve excess capacity, eliminate low-end capacity, and promote supply-side structural reform with market economy-based measures.
Three of China’s five biggest state-backed commercial banks have seen their 2017 profit growth beating analysts estimates, benefiting from improving economic growth that curbed bad loans and the Chinese government’s efforts to deleverage its corporate sector.
Ansteel Group Corporation and China International Capital Corporation Limited (CICC) have signed a strategic cooperation agreement yesterday to form a joint venture fund tasked to restructure and consolidate the Chinese steel sector.
For John Marsden, a Hong Kong-based cross-border restructuring expert and a partner of Mayer Brown JSM, playing a role in "changing the law" is one of the most exciting aspects of his career.
Chinese consumers have another way to lose money, by paying deposits to bike sharing startups that go belly up. The latest example is Chinese bike-sharing firm Xiaoming Bike, which plans to file for bankruptcy after failing to pay back customer deposits.
Chinese banks are becoming increasingly important players in the global economy. But by doing so they have greatly increased their exposure to global financial risk. It also means China will have to play a larger, more challenging role in the event of future economic upheaval.
China’s troubled airline-to-hotel conglomerate HNA Group is planning to sell "part or all" of its US$1.4 billion stake in U.S. hotel company Park Hotels & Resort Inc., according to a regulatory filing by the hotel chain. "The Reporting Persons have determined to pursue a sale, through one or more registered public offerings, of some or all of the Common Stock that the Reporting Persons currently hold," Park Hotels stated in its filing. "The exact timing, manner and terms of any …
China Great Wall Asset Management Co., Ltd., one of four central government-level financial firms tasked with managing Chinese bad loans, reported that the company realized a net profit of RMB10.6 billion (US$1.7 billion) in 2017, up 18.54% year-on-year.
China’s insurance regulator has decided to takeover Anbang Insurance Group, a once high-flying insurance company headed by Wu Xiaohui, ex-husband to the granddaughter of former Chinese paramount leader Deng Xiaoping. In a statement posted on the China Insurance Regulatory Committee (CIRC), Wu Xiaohui, Anbang’s ex-chairman, has been prosecuted for alleged economic crimes by a court in Shanghai.
China’s embattled HNA Group is again selling assets to pay down its debt burden. In a statement to the Hong Kong stock exchange Tuesday, HNA unit Hong Kong International Construction Investment Management Group Co Ltd said it will sell two Hong Kong properties to Henderson Land Development Co Ltd for HK$16 billion (US$2 billion).
China has a new way to deal with its growing pile of bad corporate debt with the establishment of the nation’s first online distressed asset exchange. China Huarong Asset Management Co Ltd, a large state-owned asset manager, last week launched an online platform for bad debt transactions named the Huarong Zhongguancun Distressed Asset Exchange Co. The new entity is the first institution in China dedicated to the trading of bad debt and will have a registered capital of RMB500 million (US$80 …
China can expect to see a rising number of bond defaults in 2018, including the likelihood of a first ever default by a local government financing vehicle (LGFV), according to a report by S&P Global Indices.
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.