Beijing has finally decided to step in to prevent the fall of troubled bad debt manager Huarong via recapitalization from government-backed investors.
China Huarong Asset Management will receive new capital from state-owned Citic Group, China Insurance Investment Co. and China Life Asset Management Co., according to an exchange filing, though no additional details were disclosed.
A previous «Bloomberg» report citing unnamed sources predicted that Huarong would receive fresh capital totaling about 50 billion yuan ($7.7 billion) with control to shift to Citic, though details were not yet finalized and could still change.
Record Loss
Meanwhile, Huarong released its delayed 2020 results which included a preliminary loss of 102.9 billion yuan. The board will approve last year’s results as well as interim 2021 results on August 28.
Thus far Huarong has repaid all its bond on time and it has $242 billion remaining liabilities, including $21 billion of offshore bonds.
