China’s largest distressed asset manager will miss the second deadline to release its 2020 earnings results, further testing markets with lacking visibility.
China Huarong Asset Management will miss its April 30 dealing to realise its annual results, according to a statement from «Chinamoney.com» which is a website run by the China Foreign Exchange Trade System – an interbank trading and foreign exchange division of China’s central bank.
The statement added that auditors need more time to finalize unspecified transactions though operations are stable and business lines are running normally.
Restructuring Plans
Following its first missed deadline on March 31, concerns about Huarong’s financial health triggered a nearly two-week fall in its dollar bonds and reviews from major debt rating agencies.
Thereafter, Chinese authorities have reportedly been mulling various options for restructuring such as the offloading of unprofitable non-core businesses, the central bank's assumption of over 100 billion yuan ($15.4 billion) of assets and transferral of ownership from the majority shareholder Ministry of Finance to Central Hujin Investment, a unit within China’s sovereign wealth fund.
