Distressed asset managers are struggling to profit in China, with no bottom in sight for its collapsing property sector and lenders reluctant to write off bad loans.
Almost a dozen distressed investment funds have said they had not increased their exposure to residential and commercial properties, despite soaring defaults in the real estate sector.
“A lot of us are standing by not knowing where to spend our money,” said an executive at Qingdao Huba Asset Management Co, which specialises in trading bad loans.
