China's Huarong to miss second results deadline

Bonds slip as investors question financial health of bad debt manager

Analysts and investors believe the Chinese government would bail out bad debt manager Huarong if necessary to prevent a crisis in the nation's $50 trillion financial system. © AP

NARAYANAN SOMASUNDARAM, Nikkei Asia chief banking and financial correspondent

April 26, 2021 15:08 JST

HONG KONG -- China's largest distressed debt manager has announced it will miss another results disclosure deadline, further unsettling bond investors and raising fresh concerns over a potential default.

China Huarong Asset Management said on Sunday that it will not meet an end-of-April deadline for announcing its 2020 audited results as auditors need more time to finalize their inspection of an unspecified transaction.