China 's vulture funds are at risk of becoming a bad credit risk themselves as the country 's slowdown and trade war with the US left them struggling to obtain access to credit . The crisis in the bad debt industry is affecting Chinese banks , which can not offload bad debt , as well as retail investors who are at risk of losing their investments in vulture funds . The problem has also spread to state - run bad debt companies , such as Beijing Huarong Asset Management , which reported a loss in pretax profits from its non - performing loans business of more than 60 % in H1 2018 .
China's vulture funds are at risk of becoming a bad credit risk themselves as the country's slowdown and trade war with the US leave them struggling to obtain access to funding. The crisis in the bad debt industry is affecting Chinese banks, which cannot offload bad debt, as well as retail investors who are at risk of losing their investments in vulture funds. The problem has also spread to state-run bad debt companies, such as China Huarong Asset Management, which reported a decline in pretax profits from its non-performing loans business of more than 60% in H1 2018.