PRINT THIS PAGE Lone Star to close Beijing office30/09/2004. Source: AltAssets. 
 Lone Star, the US turnaround specialist, is to close its office in Beijing and reduce its activity in China due to a lack of viable investment opportunities.
The private equity firm, which has recently closed a $5bn fund for investment in Asia and Europe, will still look for deals in China but no longer considers it one of its more important markets, according to a report by the Financial Times.
Overseas investors have been attracted to China by the existence of a huge bad loan debt problem, with the country's non-performing loan portfolio reckoned to be worth around $400bn. But the slow pace of disposal of these assets by China's banking community has resulted in frustration among those keen to acquire them and there are fears that further defections will follow.
Copyright © 2004 AltAssets
|
