State-owned giant Citic has reportedly been tasked with examining the finances of troubled bad debt manager China Huarong Asset Management.
China has asked Citic – one of the nation’s largest state-owned conglomerates – to review Huarong’s books, according to a «Bloomberg» report citing unnamed sources.
There is currently no indication of what will result from Citic Group’s involvement.
In 2019, Citic and China Everbright were also asked to examine the books of Baoshang Bank which ultimately resulted in a government takeover, one of the sources noted.
Huarong Restructuring
Earlier this month, Huarong was reportedly seeking to raise cash for bond repayments through potential share sales in seven units holding over $100 billion in assets.
It is also mulling a shareholder restructuring to transfer ownership from Ministry of Finance – Huarong’s majority shareholder – in bad debt managers to a new holding company in a potential «step toward separating the government’s roles as a regulator and shareholder, streamlining oversight and instilling a more professional management culture at Huarong and its peers».
The state-owned bad debt manager is also expected to publish its delayed results in the next few seeks, the sources added, ahead of its previous timeline to release before August-end.
