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The herculean task of bailing out China Huarong

State-owned asset manager's bonds have rallied, but outlook still murky

As China Huarong Asset Management belatedly confirmed the vast amount of red ink it spilled last year, the herculean scope of the government-led rescue is becoming clear — with billions of dollars in offshore bonds and domestic debt at stake.

The scandal-plagued state-owned bad asset manager reported a record loss on Sunday of $102.9 billion yuan ($15.9 billion) for 2020, in line with the preliminary figure it issued Aug. 18. The Beijing-based company missed the March deadline for reporting last year’s results, triggering a suspension of trading in its shares in Hong Kong and roiling markets across Asia as doubts over its financial health festered.

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