China should let in distressed investors, says academic

Feb 18, 2010

The best way for China's banks to deal with a growing number of non-performing loans is to allow assets to be securitised and sold at distressed levels, argues political scientist Victor Shih.

China could nip the budding problem of dud loans resulting from its 2009 fiscal-stimulus package by securitising assets and allowing them to be sold at distressed levels, says Victor Shih, a political scientist at Northwestern University in Chicago.

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