China Huarong Asset Management Co., the country’s bad-debt manager that has roiled markets with doubts about its future, will exit and restructure two units to focus on its core businesses.
China Huarong plans a public transfer of its 70% equity in Huarong Consumer Finance to external parties, it said in a stock exchange filing on Monday. The state-owned company also intends to negotiate with the main institutional creditors of Huarong Trust’s outstanding debt to complete a “debt-to-equity swap and equity transfer”, it said.
The moves are intended to meet regulatory requirements on gradually exiting non-core businesses.
China Huarong’s shares have been suspended since it delayed the publication of its 2020 results, kicking off big swings in the company’s bonds and speculation about its future.
Read more: China Huarong’s Journey From Safe Bet to Bad News: A Timeline
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