China pushes embattled Huarong to sell non-core units, mulls implicit support
Beijing, China. Photo: Raj Eiamworakul/ Unsplash
June 4, 2021
China is pushing China Huarong Asset Management Co to sell non-core assets, two people involved in the revamp told Reuters, while considering offering an implicit guarantee of the liabilities of the debt-laden bad-debt manager.
Regulators are pressing the state-controlled “bad bank”, which has been trying to restructure since 2018, to sell units including a bank, a trust, an investment firm and a consumer finance firm, the sources said.
The plan, one source said, envisions the authorities informally backing $20 billion of dollar debt coming due this year for the sprawling company, one of the nation’s four giant state-owned asset managers.