China is the only economy in the world enjoying a deflationary boom. Hong Kong gets hurt because it is a recipient of price deflation implying that the TerritoryÆs assets will under-perform ChinaÆs in the medium-term.
The non-performing loans of Chinese banks has been nagging at the back of investors'' minds for months. But the establishment of the asset management companies brings in asset recovery professionals for the first time in China''s recent history.