Salem Radio Network News Tuesday, January 25, 2022

Business

China Huarong falls 50% as trading resumes after 9-month halt

HONG KONG (Reuters) -Shares of China Huarong Asset Management Co Ltd plunged as much as 50% in Hong Kong on Wednesday to a record low, as trading resumed after a nine-month suspension, giving investors the chance to revalue the embattled company.

Shares were last trading at HK$0.52 ($0.067), the lowest since the company debuted in October 2015.

Huarong, one of four state-owned distressed-debt managers, halted trading in its shares in April 2021 after missing a March 31 deadline for filing its 2020 earnings, sparking a rout in its U.S. dollar-denominated bonds that spread to other Chinese issuers.

In August, Huarong, which counts China’s finance ministry as its largest shareholder, announced a first-half 2021 profit of 158.3 million yuan ($24.5 million) and a nearly $16 billion loss for 2020.

Wednesday’s share trading resumption follows Huarong’s announcement in November that it would receive fresh capital worth 42 billion yuan ($6.59 billion) from a state consortium led by Citic Group as part of a restructuring plan.

Huarong has also announced a slew of asset divestment deals, including stake sales in its consumer finance, securities and distressed asset exchange businesses, amid a regulatory push to sell non-core assets in its business revamp.

The company said it applied to resume trading as the resumption guidance had been fulfilled, including the disclosure of all material information on its business, financial performance and operation in its results.

($1 = 7.7930 Hong Kong dollars)

(Reporting by Donny Kwok and Samuel Shen; Editing by Jacqueline Wong and Christian Schmollinger)

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