China’s NPL market: first national AMC approval in 21 years

Nearly 21 years after China established the big four national asset management companies (AMCs) to acquire, manage and dispose of non-performing loans (NPLs), the Chinese government has approved the establishment of a fifth national AMC.  This is a significant milestone for China’s growing NPL market which will have significant implications for market participants and, ultimately, for foreign investors looking for Chinese NPL-related opportunities. On 5 March 2020, the China Banking and Insurance Regulatory Commission (CBIRC) announced its approval for Beijing-based Jiantou Citic Asset Management Co., Ltd (Jiantou Citic) to be converted into a national AMC and renamed China Galaxy Asset Management Co., Ltd. (China Galaxy AMC).  China Galaxy AMC must complete its conversion into a national AMC within six months of the CBIRC’s approval.  Currently, China Gal ………………………………