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China Huarong Asset Management Exiled to State-owned Enterprises

Top managers of distressed assets in China expect to record huge losses, avoid nasty defaults that could have widespread impact on Asian credit markets, and receive capital injections from state-owned financial institutions He said he was.

China Huaron Asset Management, which is owned by the Chinese Treasury and is the largest manager of non-performing loans and other non-performing loans, also said it has no plans to restructure its debt, and many Chinese institutions have invested. We are consolidating our beliefs among the homes. It’s too big to fail.

The company said late Wednesday that it plans to record a net loss of about $ 16 billion in 2020. Earlier this year, the delay in the company’s earnings announcement surprised international investors and caused bond prices to fall.

The Beijing-based company blamed former chairman Lai Xiaomin, who was executed after the court found him guilty of bribery and embezzlement, for past overexpansion and other issues. He also said that the coronavirus pandemic and its negative impact on the market caused some assets to deteriorate rapidly.

Huarong said five state-owned financial companies, including the investment division of Citic Group, non-performing loan manager China Cinda Asset Management and China Life Insurance Co., have signed contracts to purchase newly issued shares. A lot of capital they planned to contribute.

China Huarong Asset Management Exiled to State-owned Enterprises

Source link China Huarong Asset Management Exiled to State-owned Enterprises

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