China’s Very Bad Bank: Inside the Huarong Debt Debacle
Bloomberg 1 hr ago Bloomberg News
(Bloomberg) It’s been 11 weeks since Lai Xiaomin, the man once known as the God of Wealth, was executed on a cold Friday morning in the Chinese city of Tianjin.
But his shadow still hangs over one of the most dramatic corruption stories ever to come out of China – a tale that has now set nerves on edge around the financial world.
At its center is China Huarong Asset Management Co., the state financial company that Lai lorded over until getting ensnared in a sweeping crackdown on corruption by China’s leader, Xi Jinping.
China s Very Bad Bank: Inside the Huarong Debt Debacle
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What s Next for Huarong? The Best and Worst Case Scenarios
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by Tyler Durden
Tuesday, Apr 13, 2021 - 12:01 PM
The last time we looked at Huarong, China s largest state-controlled bad-debt asset manager and one of the most recognizable financial firms in the country, its former chairman Lai Xiaomin was sentenced to death after he was convicted for stealing 1.8BN yuan (roughly $277M) from the company.
And while we don t know if Lai is still with us, his former employer probably wishes the money he embezzled was still around, because over the past few days Huarong has emerged as the latest a weakest link in China s financial system, one which is sending shockwaves across all of China s capital markets.