Global managers alerted to China JV risks

Fund managers with a China joint venture that operates a segregated account subsidiary have been urged to review the latter’s liability firewalling, risk control and capitalisation levels with their mainland partner. The warning was issued by Shanghai-based consultancy Z-Ben Advisors. It comes after subsidiaries of Value Partners Goldstate, Wanjia and Huachen Asset Mirae all disclosed potential product defaults or repayment problems from borrowers of a size that dwarfs those subsi…