Chinese Bad-Debt Manager Huarong Confirms $16 Billion Annual Loss

This article from Wall Street Journal written by Xie Yu and Frances Yoon

China’s top manager of distressed assets, China Huarong Asset Management Co., confirmed it made a net loss of roughly $16 billion last year, and warned investors that it fell short of regulatory requirements on financial strength.

The publication of the 2020 results is a key step in the rehabilitation of Huarong. The company, a major borrower in international bond markets, had rattled global investors earlier this year after it delayed the release of its annual results.

The figures, issued late Sunday Hong Kong time, showed that Huarong had made a net loss of about 103 billion yuan last year, equivalent to $15.9 billion, as it took huge write-downs on its assets. Those impairment charges were equivalent to $16.7 billion.

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Source: https://www.wsj.com/articles/chinese-bad-debt-manager-huarong-confirms-16-billion-annual-loss-11630254915?mod=markets_lead_pos5

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