In yet another unexpected turn of events for the troubled Huarong, an appointed president didn’t accept the offer and has instead taken the same role at a rival bad asset manager.
Liang Qiang was named president of China Great Wall Asset Management, according to a statement published by the China Banking and Insurance Regulatory Commission.
Liang is a former deputy Communist Party chief and was most recently an executive director at China Great Wall.
Huarong Appointment
Liang was reportedly approved to be the long-awaited president of the troubled China Huarong Asset Management earlier this month but did not accept the appointment, according to a «Caixin» report citing unnamed sources.
The bad asset manager is facing credit pressures from worries about state support over $40 billion of outstanding foreign and domestic debt.
According to recent data from China Securities Depository and Clearing Corp., borrowers putting up a Huarong Securities 2023 bond for collateral now get just 40 percent of the note’s face value as cash compared to 91 percent at the start of April.
