; Editing by Jennifer Hughes and Lincoln Feast. 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 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 .