China launched its first international tender for $1.8 billion of bad loans on Monday in a landmark sale aimed at bailing out debt-ridden banks, but attracted only seven bidders.

Sixteen firms had originally shown interest in buying the non-performing loans from China, which acquired the debts from its four big state banks after decades of lending to ailing state firms.

The seven foreign and domestic bidders included U.S. investment bank Goldman Sachs and GE Capital, the finance arm of General Electric Co.

A successful auction could pave the way for China to offload $170 billion of distressed debt, but most analysts expect scant foreign interest in the poor quality assets, which include loans, collateral and property.

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