HOZU Capital Hosted the 2025 Distressed Debt and Non-performing Assets (NPAs) Forum in Beijing

HOZU Capital Hosted the 2025 Distressed Debt and Non-performing Assets (NPAs) Forum in Beijing

HOZU Capital hosted the Distressed Debt and Non-performing Assets Forum, organized by the Beijing Arbitration Center (BAC), on Thursday, October 30, 2025, in Beijing, China, highlighting the pivotal role of third-party funding (TPF) in facilitating cross-border recovery and restructuring of distressed debt and NPAs in China.

The program focused on the restructuring and recovery of distressed debt and NPAs in China and brought together over 160 experts and scholars from national courts, arbitration institutions, asset management companies, law firms, universities, and research institutions in China. Jialu Wang, HOZU Capital’s Co-founder, moderated the keynote and roundtable discussions. HOZU Capital Partner and Head of International Business, Tiana Zhang, offered insights into the role of TPF in distressed debt and NPAs recovery.

Ø  Opening Remarks

Jin Huang, the Chairman of the Beijing International Dispute Resolution Development Center, and Lili Jiang, BAC’s Secretary-General, offered opening remarks.

Jin Huang noted that distressed debt restructuring plays a crucial role in the economy by preventing widespread bankruptcies, preserving viable businesses and jobs, and promoting overall financial stability, while Lili Jiang stressed that as China’s distressed debt and NPAs market expands, the BAC—having handled over 100,000 cases worth more than 1 trillion RMB, including 2,500 cross-border disputes recognized across five continents—continues to promote relevant efforts through innovation and rulemakings.

Ø  Keynote Speeches

Fengguo Cao of China Orient Asset Management Co., Ltd., Yonggang Sun, an arbitrator at the BAC, and Yunlong Lei, a senior judge of the Beijing Financial Court, delivered keynote speeches.

Drawing on his practical experience, Fengguo Cao explored the intersecting legal, financial, and strategic dimensions of distressed debt recovery, shedding light on key legal uncertainties that continue to challenge the existing framework. Yonggang Sun, speaking from the perspective of an arbitrator, examined how tribunals evaluate contract validity, manage collateral enforcement, and allocate risk in cases involving distressed debt and non-performing assets. Finally, sharing insights from the bench, Yunlong Lei outlined how the Chinese courts utilize judicial powers and enforcement measures to promote efficient recovery of non-performing and distressed debts.

Ø  Roundtable Discussion

Building upon the keynote speech, the roundtable examined how various stakeholders—including investigators, law firms, and funders—can contribute to advancing recovery efforts in distressed debt and NPAs management and restructuring in China. Representing HOZU Capital, Tiana Zhang emphasized that TPF serves as a pivotal mechanism for driving distressed debt and NPAs enforcement. She further emphasized how TPF can facilitate the recovery of NPAs through cross-border enforcement by enabling risk sharing, mitigating uncertainties, offering professional case management, and leveraging an extensive global network.

Joining Tiana, other experts also added their perspectives: Ya Peng of King & Wood Mallesons addressed China’s domestic practices for enforcing and monetizing NPAs; Jian Kang of Kobre & Kim LLP (U.S.) compared global approaches to recognizing and enforcing judgments and awards; Mark Cheng of Rajah & Tann Asia (Singapore) examined cross-border enforcement of Chinese court decisions in the ASEAN region and other jurisdictions; and Carmen Liu of Control Risks discussed best practices and practical considerations in global asset tracing and recovery.