Finance ministry lets 3 asset managers buy bad debt directly from firms

China’s Ministry of Finance has granted licenses to three asset management firms – Huarong, China Orient and China Great Wall – to buy bad debt directly from companies, instead of just from banks, South China Morning Post reported. “The process for regulating non-financial non-performing assets will be very challenging,”  said Wilson Pang, partner in charge of special situation deal advisory at KPMG in Shanghai. “This set of debts arise out of normal businesses between suppliers and customers. These are not subject to the same regulations under the banking regulator. There is limited legal basis for enforcement.”