China Huarong falls 50% as trading resumes after 9-month halt (updated)

China CITIC Financial Asset Management

05/01/2022 02:41

(Adds background, share price)
    HONG KONG, Jan 5 (Reuters) - Shares of China Huarong Asset
Management Co Ltd  2799.HK  plunged as much as 50% in Hong Kong
on Wednesday to a record low, as trading resumed after a
nine-month suspension, giving investors the chance to revalue
the embattled company.
    Shares were last trading at HK$0.52 ($0.067), the lowest
since the company debuted in October 2015. 
    Huarong, one of four state-owned distressed-debt managers,
halted trading in its shares in April 2021 after missing a March
31 deadline for filing its 2020 earnings, sparking a rout in its
U.S. dollar-denominated bonds that spread to other Chinese
issuers. 
    In August, Huarong, which counts China's finance ministry as
its largest shareholder, announced a first-half 2021 profit of
158.3 million yuan ($24.5 million) and a nearly $16 billion loss
for 2020.    
    Wednesday's share trading resumption follows Huarong's
announcement in November that it would receive fresh capital
worth 42 billion yuan ($6.59 billion) from a state consortium
led by Citic Group as part of a restructuring plan.  urn:newsml:reuters.com:*:nL4N2S913E
    Huarong has also announced a slew of asset divestment deals,
including stake sales in its consumer finance, securities and
distressed asset exchange businesses, amid a regulatory push to
sell non-core assets in its business revamp.
    The company said it applied to resume trading as the
resumption guidance had been fulfilled, including the disclosure
of all material information on its business, financial
performance and operation in its results.  urn:newsml:reuters.com:*:nFWN2TJ0Z2


($1 = 7.7930 Hong Kong dollars)

 (Reporting by Donny Kwok and Samuel Shen; Editing by Jacqueline
Wong and Christian Schmollinger)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470;))