Authors: John Xu, Alex Roberts, James Warboys

Investing in Distressed Assets in Mainland China: Outlook for 2020

China’s distressed asset pool is expected to grow in 2020, following the China-U.S. trade dispute, the recent crackdown on shadow banking, more stringent regulation of financial institutions, increasing bond defaults and, most recently, the outbreak of COVID-19. This alert examines some key issues to be considered when foreign investors explore these structural reforms as well as highlighting those changes that may facilitate the acquisition and recovery of distressed assets.