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The People's Bank of China, in Beijing. The phase one trade deal with Washington paves the way for U.S. financial services companies to apply for asset management company licenses that puts them on par with their Chinese peers when it comes to buying distressed debt. (Source photo by Reuters) 
Business Spotlight

China calls on foreigners to drain $1.5tn bad-debt swamp

Goldman, Oaktree and Lone Star see massive buying opportunities

NARAYANAN SOMASUNDARAM, Nikkei Asian Review chief banking and financial correspondent | China

HONG KONG -- Over the past six months, executives at Hong Kong-based investment firm SC Lowy have been inundated with calls from bankers in China hoping to sell them distressed debt.

That is a first in the 11 years since the $2 billion firm was established and underscores how China, after spending two decades trying to clean up bad debt by itself, is finally warming up to foreign capital.

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