Investors seeking to recover capital from a growing number of companies defaulting on debt repayments in China face numerous challenges in seeking redress, speakers at a conference in Hong Kong said on Wednesday.
Among the hurdles are the country's deficient legal framework, substandard bookkeeping, deep subordination in the capital structure of Chinese companies issuing offshore bonds, and political interference.
“There will be a lot of bankruptcies and restructurings and creditors will take a hit, said Ying Wang, a senior director at credit rating agency Fitch speaking at the Borrowers and Investors Forum. Most of all I hope there will eventually be more clarity and consistency...
¬ Haymarket Media Limited. All rights reserved.
