PDI Asia Briefing: China ‘mispriced for risk’

Private debt lenders face mismatched risk-return profiles and continuing difficulties when enforcing contracts.

Chinese assets and loans are too expensive and often don’t take into account the added risk in the country, delegates heard at the Private Debt Investor Asia Briefing 2013 in Hong Kong.

“Chinese assets in general, and loans in particular, are mispriced for risk. Part of that is the dominance of the local banks who don’t price for risk at all as far as I can see.

Share this