NPL cycle and 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 Chinese government has been trying to rein in its own financial sector by limiting their ability to raise money through equity sales or issuing bonds on the open market. 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.
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 Chinese government has been trying to rein in its own financial sector by limiting their ability to raise money through equity sales or issuing bonds on the open market. 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.