Bad debts offer good opportunity for asset management firms

Nonperforming loans can be a problem for banks, but they're also a source of profit for the companies that are set up to resolve the problem, Yang Ziman reports

As nonperforming loans creep up in China, the situation is presenting opportunities for at least one sector - asset management companies - to benefit from the opportunity to acquire NPLs cheaply from troubled lenders and sell them at a profit.

Any decline in the property market, which many analysts have warned is likely to cool or even slump, will provide even further chances for the AMCs to gain as loans to developers sour.