(Bloomberg) When hedge fund titans from George Soros to Kyle Bass look at China’s mountain of bad loans, they see a financial crisis waiting to happen. Denis Zhang spots an opportunity to load up on bargains.
The former Lehman Brothers Holdings Inc. trader is among a new breed of Chinese distressed debt investors making big money as banks sell their non-performing loans at fractions of face value. Zhang’s Oriental Asset Management, which purchases NPLs on behalf of clients, has doubled its profit every year since 2013. Sincetop Asset Management, another home-grown buyer of troubled credit, is generating annualized returns of more than 20 percent.
