China's financial system has a huge amount of non-performing loans—by some estimates, the total reaches as much as US $500 billion. Because WTO obligations require China to open its banking sector to foreign competition, the country is trying hard to unload much of these non-performing loans (generally through ad hoc "AMCs") to domestic and foreign investors. Shoreline Capital has relationships with China's banks and AMCs that allow it to sift through much of the distressed debt offerings and find superior portfolios.

Shoreline has sourced and closed over US $50 million of investments in non-performing loan portfolios in China (over RMB 5 billion legal balance) and is currently servicing a large part of these investments. The firm has internal non-performing loan servicing teams in each of the geographies where it has closed investments. These teams consist of asset managers and legal professionals that specialize in servicing debt. Additionally, at any given time, the firm's professionals are engaged in due diligence on new portfolios of distressed debt for potential acquisition.