More than three dozen asset-management companies are vacuuming up bad debts from Chinese banks. But it’s more like sweeping the problems under the rug.
China is going back to basics when it comes to bad-debt management.
Beijing has unveiled a slew of tactics to clean up the dud loans in its banks—from debt-to-equity swaps and bad-loan securitizations to over-the-counter selling of bad assets. It is also reverting to a strategy of cleansing the system of nonperforming assets: so-called bad banks.
