China's NPLs show rich pickings

But to get more deals, foreign bankers will have to learn to share their profits say Mainland observers.

There is a building in China's Northern Liaoning province, classified as a five star hotel, to which there are no roads. It is built in the middle of nowhere. The project was funded by the local branch of a state-owned commercial bank to the tune of millions of dollars.

After the first loans went sour, further funds were given to the developers friends of the loan officer to defray expenses, based on the argument that it was better to continue construction than to be left with a white elephant. However, this meant that no one had ownership of the 'expenses' in the event of the project failing.

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