Bad Loans Part 2: Big Four Asset Management Companies Get Pushed Aside

(Beijing) — China's big four national asset management companies (AMCs) played a crucial role in helping the country's state-owned banks shed bad loans and go public more than 10 years ago. But now they are being quietly pushed off center stage in what is shaping up to be the best opportunity yet for businesses like them that handle distressed assets.

They are facing increased competition from local-government-controlled AMCs, private investors and even banks that are now embarking on the business. A lack of expertise and slow adaptation to a fast-changing environment did not help.