China’s Bad Loan Managers Face Growing Pressure on Core Business

China’s distressed loan managers are facing mounting pressure as the pandemic has made it harder to dispose of assets, according to a closely watched survey by China Orient Asset Management Co.

Increasing credit losses at the managers themselves threaten to hurt profits and have adverse impact on their capital strength over the long term, China Orient, one the nation’s four state-owned bad loan banks, said in a report published on Friday. It also warned of growing difficulties to manage the maturity mismatch as their liabilities are mostly short-term.