BloombergAmid rising defaults and tighter liquidity for Chinese privately owned enterprises, the nation’s banks are letting some companies fail, something Deutsche Bank AG says presents bigger opportunities for foreign investors in troubled debt. It is to give US investors direct access to the nation’s soured debt market as part of this week’s “phase 1” trade deal. “There are signs we are seeing the beginning of a distressed debt cycle in China,” Deutsche Bank Asia Pacific investment bank cohead Amit Khattar said in an interview. “Distressed debt in China is going to be really interesting.”Defaults in China’s onshore corporate bond market hit a record high last year and troubles have continued in the offshore market as well. “Traditionally, it’s been harder to buy secondary loans in China and we haven’t been particularly active in China NPLs,” Khattar said.

Source: Taipei Times January 17, 2020 15:56 UTC