S&P says Huarong events could prompt review of state support

S&P says Huarong events could prompt review of state support


By Reuters Staff
3 Min Read
SHANGHAI (Reuters) - S&P Global Ratings said on Wednesday that concerns over the creditworthiness of subsidiaries of Chinese bad-loan giant China Huarong Asset Management Co Ltd could prompt it to review government support for state-owned enterprises.
FILE PHOTO: The logo of China Huarong Asset Management Co is seen at its office in Beijing, China, April 16, 2021. REUTERS/Thomas Peter
In a statement, S&P said it believed Huarong had a high likelihood of receiving “extraordinary government support”, but that information disclosure delays and a prolonged inability to access capital markets could prompt a reassessment.
“If the extraordinary government support were not forthcoming, we may need to reassess the support for Huarong’s offshore subsidiaries as well as the support for offshore subsidiaries of other Chinese government related entities,” the statement said.

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