Domestic and overseas investors have been feasting on a flood of sour loans being churned out by China’s economic slowdown, mostly by buying shares in big state-run firms that try to recover money from those bad assets. In the latest wrinkle of that story, 8 major institutional buyers have spent a hefty $2.4 billion to purchase 21 percent of China Huarong Asset Management, one of the leading bad asset managers.
But bad asset management isn’t always such an easy game to play, as another group of China-backed investors is learning after their ill-advised purchase 2 years ago of insolvent Swedish car maker Saab. That group, called National Electric Vehicle Sweden AB (NEV) has declared bankruptcy, signaling an end may finally be near for the Swedish car maker that probably should have died several years ago. Read Full Post…
