Levels of non-performing loans (NPLs) are expected to rise
in China as the economy works to recover from the impact of
Covid-19. However, investment firms want authorities to make it
easier to access portfolios.
PwC estimated that China is home to $1.5 trillion NPLs.
S&P estimates that they could rise by $800 billion in 2020.
"It's too early to tell what the impact of Covid-19 will be
on NPLs, but it is definitely impacting the cash flows of
companies and the balance sheets of banks," said Ron Thompson,
managing director at consultancy firm Alvarez & Marsal
Asia. "The China-US trade war and China's deleveraging efforts
have been accelerating the growth of the NPL pool, and the
virus is one more thing that will add to that."
Ben Fanger, managing partner at ShoreVest Partners, an
institutional private investment firm in Chinese...