jury-is-out-on-chinas-new-bankruptcy-law

Jury is out on ChinaÆs new bankruptcy law

China's new insolvency laws may open up a new landscape for investors such as distressed-asset hedge funds.
This is the first week in which ChinaÆs new restructuring and bankruptcy laws have been in play. Observers are waiting to see if there will be a tsunami of court applications from creditors frustrated by the obduracy of Chinese borrowers, tackling the companies that linger on in zombie state, unable and unwilling to meet their obligations. For investors, not least distressed-asset and event-driven hedge funds, the changing landscape brings new opportunities.

In the past, bankruptcy laws were frowned upon by the Chinese government as being prejudicial to the proletariat. Basket-case companies firing hard working comrades was perceived as being counter-revolutionary.

Now, China has a new set of bankruptcy and insolvency laws that were introduced on...
¬ Haymarket Media Limited. All rights reserved.

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