Troubled bad debt manager Huarong is reportedly seeking to raise cash for bond repayments through the sale of shares in multiple units that hold more than $100 billion in total assets.
Huarong will look to sell stakes in seven companies as part of a restructuring, according to a «Caixin» report citing unnamed sources.
The seven firms hold 700 billion yuan ($109 billion) in total assets.
If the disposal is successful, Huarong will effectively return to its core business as a bad debt manager with total assets shrinking to about 1 trillion yuan.
Market Pressures
Huarong continues to face market pressures with its share price plunging to around a quarter compared to its peak in early 2018.
Most recently, MSCI said it planned to remove Huarong from its stock indexes, effective June 22, due to continued suspension of share trading for 50 consecutive days.
