(Bloomberg) -- Huarong International, the international unit of the Chinese ‘bad bank’ which has been facing questions about its ability to repay bonds, said it returned to profit in the first quarter and will focus on cutting risk exposure and ensuring liquidity.

All operating indicators are meeting targets, the company said in a statement posted on its Wechat account late Tuesday, adding that it held a meeting Monday to discuss the first quarter operations. The firm’s parent China Huarong Asset Management Co. is stepping up efforts to revive investor confidence after persistent questions about the bad-debt manager’s financial health sent its dollar bonds tumbling to record lows.

Huarong Bonds Sink After Report Regulators Mulling Restructuring

Almost all of China Huarong Asset Management’s $22 billion in dollar bonds are issued or guaranteed by the offshore unit, Huarong International.

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