- Edwin Wong, chief investment officer at Hong Kong-headquartered investment firm SSG Capital Management, which invests in distressed debt, sees the biggest opportunities in China and India amid tight liquidity.
- The US-China trade war is also starting to hit companies, as rising interest rates pressure businesses, according to FTI Consulting, a firm that advises on restructuring.
- “We are setting up the business on the premise that we will see an increase in defaults in 2019,” said John Batchelor, Asia head for corporate finance and restructuring at the firm, adding that the company is looking to increase its headcount in Hong Kong and China.
- The crackdown on China’s $10 trillion shadow banking market is also contributing to a rise in defaults, as many entrepreneurs have limited access to the nation’s banking system, according to Ron Thompson, a managing director at Alvarez & Marsal Asia who leads the firm’s Asia restructuring practice.
- NOTE: A US government delegation will travel to Beijing in the week of Jan. 7 to hold trade talks with Chinese officials, two people familiar with the matter said.
- In India, the overhauled bankruptcy regime is likely to continue to put pressure on companies to sort out their debt problems or be forced into insolvency. The abrupt resignation of Urjit Patel as central bank governor has prompted some to question his successor’s independence.
- While it’s too early to tell what the the new governor will do, the government’s “concerted efforts” to clean up the banking sector and create better protection for creditors should remain, according to SSG’s Wong.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in