Foreign investors eager to unearth China’s risky debts

China’s corporate default risk is not deterring foreign investors, many of whom are keen to gain exposure to debt assets such as a growing pool of non-performing loans (NPLs) and offshore high-yield corporate bonds. The Covid-19 pandemic has caused a great deal of financial duress, not least among property companies. And Beijing’s crackdown on shadow banking and stricter classification rules for defaulting bank loans mean that China’s NPLs will undoubtedly grow.  China’s commerc…