Morgan Stanley in biggest yet international NPL deal with China Huarong

In a major step forward toward the resolution of China's serious banking problems, China Huarong Asset Management has announced the sale of RMB10.8 billion ($1.3 billion) worth of non-performing loans to an international consortium led by investment bank Morgan Stanley. While some small NPL deals have been made with domestic investors on a one-to-one basis, this deal is by far the biggest to have come out of China and is also aimed at international investors. So far, severe transparency and legal issues, as well as valution conflicts have prevented the speedy resolution of China's NPL problem.