Oaktree Capital Group on Monday announced a distressed-debt investment joint venture with Hong Kong’s China Cinda Asset Management Co.

The downtown Los Angeles investment company said the two companies plan to jointly invest in distressed assets in China, and cooperate on distressed-asset investments in markets outside China.

“Cinda's experience and expertise in China is unparalleled and will afford us a unique opportunity to participate in China’s distressed debt markets.” John Frank, Oaktree’s managing principal, said in a statement. He said Cinda was the “market leader in distressed investing” in that country.

Also on Monday, China Cinda issued a prospectus for an initial public offering that seeks to raise up to $2.5 billion. The IPO is generating high interest among global investors as China's slowing economy increases the prospects for more distressed loans.

Oaktree shares closed up 47 cents, or 1 percent, to $54.90 on the New York Stock Exchange.

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