Rich Chinese Chase 22% Yields in Private Credit Despite Risks

Sliding stock and property markets are pushing wealthy investors from Hong Kong and mainland China into private credit to chase big yields in the $1.7 trillion industry despite warnings of rising defaults.

Some of Hong Kong’s biggest family offices including Nan Fung Trinity are following global peers to ramp up investments in alternative assets offered by firms such as Blackstone Inc. and Apollo Global Management Inc.. Others like wealth manager Carret Private Investments Ltd.are investing in direct private credit deals, with some offering returns of more than 20%.

Amid stronger demand, UBS Group AG’s wealth management arm ...