Foreign Investment in China’s NPL Market

*Please note this course will be conducted in Mandarin*

Following continuous decline of China’s economy, the ratio of non-performing loans (“NPL”) in commercial banks continues to grow. In February 2016, eight ministries and commissions including the People’s Bank of China released ‘Several Opinions on Financial Support to Maintain Steady Industrial Growth, Adjust Industrial Structure and Improve Industrial Efficiency’ calling for increasing the efficiency and strengthening the process for disposing of NPL, offering new market opportunities to the business of NPL disposal. Furthermore, for foreign investors actively involved in disposal of Chinese NPL since 2001, it is undoubtedly another round of hot investment opportunities for them to share with the Chinese NPL market!

Over the years, the lecturer, Ms. Catherine Miao, has accumulated extensive experience in the fields of NPL disposal and management, debt restructuring, and mezzanine finance. She would like to share the insights for international investment banks and the foreign investors that are preparing for or that are already actively participating in the disposal of NPL in China.

Detailed Information

Highlights of the course include:

  • Overview of China’s NPL Market
    • History and Development
    • Current Status and prospect
  • Legal Avenues for Foreign Investors to China’s NPL Market
    • Outbound Investment by AMCs with NPL Portfolio as Capital Contribution
    • Acquisition of NPL Portfolios by Foreign Investors
    • AMCs Establish JV with Foreign Investors
    • Foreign Investors Establish Private Funds to Acquire NPL Portfolios
  • Due Diligence Against NPLs and Debtors
    • Importance of Due Diligence
    • Methods to Carry Out Due Diligence
    • Legal Defects Found in Due Diligence
  • Debt Collection in China
    • Permitted Security
    • Pre-enforcement Proceedings
    • Enforcement
      • Enforcement Measures against Collaterals and Uncollateralized Assets
      • Enforcement Measures against Dishonest Persons
  • Debt Restructuring in China
    • Case Study