The disposals dilemma

China NPLs

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Disposals of non-performing loans (NPLs) in China have ground to a slow crawl. So far, only China Huarong Asset Management Corporation (AMC) – one of the four AMCs charged with disposing NPLs of the big-four banks – has succeeded in auctioning off some NPLs to foreign investors. Only one auction of non-performing settled assets1 by a Chinese bank to a foreign investor – China Construction Bank (CCB) and Deutsche Bank – has been completed.

China's NPL market, the world's largest, is valu