China Orient Asset Management plans to launch a US$1 billion distressed property debt fund open to foreign investment as property-price growth in China slows, Reuters reported. Chief executive Lijian Chen said the fund, China Orient Summit Capital, would use its connections to help foreign investors take advantage of “off-market opportunities” and to purchase the bad loans they desired. The fund’s launch is the second attempt by China to sell distressed debt to foreign investors after failing to open the market in the mid-2000s. Foreign investors blamed rigged auctions, opaque laws and government interventionism for the market’s collapse.
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