China's NPLs show rich pickings

But to get more deals, foreign bankers will have to learn to share their profits say Mainland observers.

There is a building in China's Northern Liaoning province, classified as a five star hotel, to which there are no roads. It is built in the middle of nowhere. The project was funded by the local branch of a state-owned commercial bank to the tune of millions of dollars.

After the first loans went sour, further funds were given to the developers friends of the loan officer to defray expenses, based on the argument that it was better to continue construction than to be left with a white elephant. However, this meant that no one had ownership of the 'expenses' in the event of the project failing.

...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222