Investor interest in China NPLs waning

November 30, 2006 | BY

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A recent PricewaterhouseCoopers company survey found that many investors have lost interest in investing in non-performing loans (NPLs) in China and have…

A recent PricewaterhouseCoopers company survey found that many investors have lost interest in investing in non-performing loans (NPLs) in China and have begun to invest in real estate and private equity in the country instead.

The survey cites the following as reasons for the decreased interest in NPLs: investors doubt that NPLs will yield satisfactory returns, they dislike the auction sales format, and they find that there is a lack of predictable deal flow. The new competition creates more challenges for asset management companies (the only sellers of Chinese NPLs in this market), which must now compete for investment capital.

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