ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
China debt crunch

China Huarong announces state bailout alongside $16bn loss

Citic leads capital injection for distressed-debt manager

The pandemic and management woes have been a double whammy for Huarong.   © Reuters

SHANGHAI -- China Huarong Asset Management is set to receive a capital injection from a group of companies led by Citic Group, the state-owned bad-debt buyer said Wednesday, as it announced an estimated 102.9 billion yuan ($15.9 billion) net loss for 2020.

The embattled company cited a "decline of contract performance ability of certain customers" amid the coronavirus pandemic, which led Huarong to reassess asset risks and book large impairment losses. The liquidation of risky assets acquired under former Chairman Lai Xiaomin's aggressive expansion strategy also contributed to the massive loss.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more