BEIJING/HONG KONG (Reuters) -China is pushing China Huarong Asset Management Co to sell non-core assets, two people involved in the revamp told Reuters, while considering offering an implicit guarantee of the liabilities of the debt-laden bad-debt manager. The plan, one source said, envisions the authorities informally backing $20 billion of dollar debt coming due this year for the sprawling company, one of the nation's four giant state-owned asset managers. Huarong's problems spooked investors in China's dollar-bond market in April after it delayed its business results, prompting ratings downgrades, warnings from global agencies and an ongoing suspension in share trading.
China is pushing China Huarong Asset Management Co (2799.HK) to sell non-core assets, two people involved in the revamp told Reuters, while considering offering an implicit guarantee of the liabilities of the debt-laden bad-debt manager.
China pushes embattled Huarong to sell non-core units, mulls implicit support
Beijing, China. Photo: Raj Eiamworakul/ Unsplash
June 4, 2021
China is pushing China Huarong Asset Management Co to sell non-core assets, two people involved in the revamp told Reuters, while considering offering an implicit guarantee of the liabilities of the debt-laden bad-debt manager.
Regulators are pressing the state-controlled “bad bank”, which has been trying to restructure since 2018, to sell units including a bank, a trust, an investment firm and a consumer finance firm, the sources said.
The plan, one source said, envisions the authorities informally backing $20 billion of dollar debt coming due this year for the sprawling company, one of the nation’s four giant state-owned asset managers.