led consortium

China Cinda Asset Management

17/11/2021 15:57

Nov 17 (Reuters) - Chinese state-owned asset manager China
Huarong Asset Management  2799.HK  said on Wednesday it will
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 intends to issue https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1117/2021111701162.pdf
 a maximum of 39.22 billion domestic shares and not more than
1.96 billion shares listed on the Hong Kong exchange to a
consortium of investors including Citic Group  CITIC.UL , China
Cinda Asset Management  1359.HK  and China Life Insurance
 601628.SS , among others.
    "It is of the view that the Issuance is the only practical
measure to solve the capital insufficiency difficulty of the
company and to satisfy the regulatory requirement," Huarong said
in the filing to the Hong Kong stock exchange. 
    The deal would allow Citic Group to assume the Chinese
government's controlling stake in the embattled asset manager as
part of a plan by regulators to fold financially shaky state
asset managers into financial holding groups.  urn:newsml:reuters.com:*:nL1N2Q1062    
    Citic Group would subscribe to no more than 18.82 billion
shares in the company while China Cinda, in a separate statement
https://www1.hkexnews.hk/listedco/listconews/sehk/2021/1117/2021111701216.pdf,
 said it would contribute roughly 4 billion yuan to pick up a
4.89% stake in Huarong.
    In August, Huarong announced a first-half 2021 profit of
158.3 million yuan ($24.5 million) and a nearly $16 billion loss
for 2020.  urn:newsml:reuters.com:*:nL1N2Q1062
     

($1 = 6.3780 Chinese yuan renminbi)

 (Reporting by Tejaswi Marthi in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Tejaswi.Marthi@thomsonreuters.com;))