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Special Situations

Chinese Real Estate Developers Turn To Asset-Backed Securities To Live Through Credit Drought

As Chinese real estate developers feel the squeeze from tightened liquidity while Beijing manages financial risks, China's home-builders have turned…

Chinese Rural Commercial Banks See Bad Loans Soar As Regulators Force Tighter Rules

Chinese rural commercial banks have seen increasing non-performing loan ratio and deteriorating asset qualities, as five out of six banks…

Chinese State-Owned Conglomerate Sinomach’s Unit Defaults On $30M Bond Payment

Corporate bond defaults are rising in China, and the latest is a Beijing-based state-owned group that controls 1,177 subsidiaries and…

Prices Of China’s Non-Performing Loans Drop As Much As 10% Due To Rising Supply

Due to increasing supply of Chinese banks' non-performing loans, prices of these assets have decreased as much as 10% in…

China Cinda Sets Up $1.5B Fund To Help Clean Up Zombie Enterprises

To capture special situation investment opportunities, China Cinda Asset Management Co., Ltd. has set up a RMB10 billion (US$1.5 billion)…

Under China’s Tightened Loan Classification Rules, One Bank Saw NPL Ratio Jump 15.41%

China's tighter regulations on bad loan classification has sent one small regional bank's non-performing loan (NPL) ratio up by 15.41%,…

China Sets Up Second Cross-Border NPL Transfer Pilot Program In Guangzhou City

Guangdong Bureau of State Administration of Foreign Exchange has set up a pilot cross-border transfers of non-performing loans (NPL) program…

Chinese Banks Turn To Asset-Backed Securities To Deal With Rising Bad Credit Card Loans

Asset-backed securities (ABS) with underlying assets of credit card bad loans are on the rise in China, as 14 ABS…

Analysts Say China’s Reserve Ratio Cut Has Limited Impact On SME Financing

The People's Bank of China (PBOC) announced a cut of the Chinese bank reserve ratio for the third time this year…

Three Major Chinese Financial Institutions Found To Provide Illegal Loans

China’s National Audit Office has found three major financial institutions illegally provided loans to unqualified industries and local governments, failing…

Tighter Regulation Pushes Up Bad Loan Ratios Of Chinese Commercial Banks

Chinese commercial banks reported much higher non-performing loans at the end of May, as the effect of tighter regulations on…

Chinese Developers Show Greater Signs Of Distress As Liquidity Risks Heighten

Chinese real estate developers are showing greater signs of distress, as companies cancel bond issuance deals and more defaults are…

Haide Industry Raising $858M To Expand Non-performing Asset Business

Shenzhen-listed company Hainan Haide Industry Co., Ltd. has announced plans to raise up to RMB5.5 billion (US$858 million) from not…

Chinese Household Appliances Manufacturer Xinfei Electric Begins Asset Auctions In Restructuring

In its latest reconstruction moves, household appliances manufacturer Henan Xinfei Electric Co., Ltd., has auctioned its brand equities and fixed…

China Cinda Uses Tech To Expands Non-Performing Loan Sales

China Cinda Asset Management Co., Ltd,one of China's Big Four AMCs (Asset Management Company), saw its non-performing asset business grew…

After Escaping Default, China’s DunAn Group Continues To Sell Assets To Reduce Debt

DunAn Group, a Chinese precision manufacturing and equipment maker amidst a debt crisis with total outstanding debt of RMB45 billion…

Chinese State-Owned Enterprises Embrace Debt-To-Equity Swap Deals To Reduce Leverage

As China continues to deleverage its corporate sector and manage systemic financial risks, debt-to-equity swap deals are increasingly embraced by…

Chinese Energy Company CERCG Unit Defaults On $350M Bond Payment

China Energy Reserve And Chemicals Group (CERCG), a Chinese energy company, said one of its wholly-owned subsidiaries had failed to…

Shenzhen Leads China’s Effort To Attract Foreign Capital In Cross-Border Transfer Of Non-Performing Loans

Since a pilot program to explore cross-border transfers of non-performing loans (NPL) was launched in Shenzhen in 2015, approximately RMB6.8…

PwC’s Victor Jong Says "Learning Curve Is Steep" For Chinese Debt Restructuring Participants

Victor Jong, Partner, Advisory Services, PwC, is based in Shanghai and has practiced in the insolvency and corporate reorganization field…

Huarong Launches Company-Wide Staff Inspection After Lai Xiaomin’s Fall

After Lai Xiaomin, party secretary and chairman of China Huarong Asset Management Co., Ltd., was under investigation for Huarong's financial…

Ping An Bank’s Bad Debt Unit Improves Non-Performing Loan Recovery Via Innovation

A year after Ping An Bank Co., Ltd. set up its bad loan asset management unit with more than 400…

Shoreline’s Tony Liu: Distressed Chinese Property Firms Offer New Single Asset Investment Opportunities For Investors

Shoreline Capital, one of the earliest investors focused on China's distressed debt market, sees an growing number of Chinese property…

Fitch Says China Risk Weakens Hong Kong Banks

Hong Kong’s proximity to China has long been its stronger selling point. But according to a new Fitch Ratings report,…

Chinese Commercial Banks Report Increasing NPL Ratio For The First Time Since Q4 2016

Non-performing loan (NPL) ratio of Chinese commercial banks rose to 1.75% in the first quarter from 1.74% at the end…

Gaw Capital Enters Distressed Real Estate Sector With $1B New Fund With Country Garden Unit

Hong Kong-based private real estate investment firm Gaw Capital has teamed up with Shenzhen Paladin Asset Management, the investment arm…

China’s AVIC Capital To Jointly Set Up $1.58B Local "Bad Bank" In Chengdu

AVIC Capital Co., Ltd., a financial services provider controlled by the Aviation Industry Corporation of China, Ltd, announced that it…

China’s Five Largest State-Owned Banks Saw Bad Loan Ratio Drop

China's five largest state-owned banks have seen their bad loan ratio drop last year, as they followed government policies to…

Chinese Corporate Bond Defaults Rise With 19 Failures So Far This Year

As China Inc. deleverages, corporate bond defaults are on the rise this year. As of May 7, a total of…

Chinese Local Asset Management Companies Turn To Bond Issuance For Funding

A number of local asset management companies (AMC) have turned to bond issuance as an alternative financing method, as these…

Chinese Equipment Maker DunAn In Distress With Total Debt Of $7 Billion To Be Restructured

A Chinese precision manufacturing and equipment maker is in distress with total outstanding debt of RMB45 billion (US$7 billion). Government…