Almost two years ago, Kaulkin Ginsberg wrote that there were potentially sizable, albeit risky, collection opportunities in China. Since that blog, China’s non-performing loan (NPL) market has grown substantially and caught the eyes of notable investors – such as Wilbur Ross, chairman of private-equity firm WL Ross & Co. – and reporters in the U.S.
It cannot be overlooked any longer: there are sizable bad debt collection opportunities within China’s credit economy.
According to Bloomberg News, data compiled by the China Banking Regulatory Commission indicates there was about 1.39 trillion yuan – or $211 billion – in NPLs in March 2016. When Kaulkin Ginsberg highlighted this topic in 2014, the total was around 700 billion yuan – or $100 billion. Less than two years later, this amount has nearly doubled.
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