REPORT: PWC China NPL Investor Survey 2004
PricewaterhouseCoopers conducted a survey recently on the China non-performing loan (NPL) foreign investment community entitled, "China NPL Investor Survey 2004". The survey explores the strategies, preferences and expectations of the China non-performing loan foreign investment community and found that well-capitalised and experienced NPL investors are eager to make multiple, sizeable investments in China's NPL market but are troubled by its lack of defined parameters, consistency and deal flow. 78% of the survey's respondents are prepared to invest between US$51 million to US$250 million each over the next 1-3 years. All of them say that China is a high, if not their top, priority in Asia and they have a common belief that opportunities should be increasing over the next few years.
The survey was sent to 40 entities, including specialised units within investment banks, distressed debt funds and other commercial entities. Seventeen of these entities completed survey forms representing an impressive 42% response rate.