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Exclusive: China pushes Huarong to sell non-core units, mull


Exclusive: China pushes Huarong to sell non-core units, mulls implicit support - sources
Reuters | Jun 05, 2021 12:23 AM EDT
The logo of China Huarong Asset Management Co is seen at its office in Beijing, China, (Photo : REUTERS/Thomas Peter/File Photo)
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. ....

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Exclusive-China pushes Huarong to sell non-core units, mulls implicit support

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. ....

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Exclusive: China pushes Huarong to sell non-core units, mulls implicit support

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. ....

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