Chinese regulators have made a last-ditch effort at flushing
billions of distressed loans out of its financial system by
securitising four percent of its $195 billion bad debt.
But counsel argue that the absence of international ratings
coupled with limited public disclosure of risks associated with
non-performing loan (NPL)-backed securities will likely deter
Eight regulators including the National Development
and Reform Commission (NDRC) jointly issued a notice that
it would allow a few qualified financial institutions to issue
non-performing-loan-backed securities, which will not be rated
by international rating agencies.
"The question of whether international investors have
an appetite for this asset class and the risks associated with
it which again will be a function entirely of the price and its
Berkeley Cox, managing partner of banking and finance at
King & Wood Mallesons in Australia.
This marks the first time...