Bad-debt manager China Huarong once again delays results as auditors need time to ‘finalise unspecified transaction’

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China Huarong Asset Management had missed an earlier March 31 deadline to announce preliminary results, saying that its auditors needed more time

The Hong Kong stock exchange, where the shares are listed, has a deadline of April 30 for companies to file final earnings results

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China Huarong is one of four state-owned entities set up by China in 1999 to help manage bad debt in the country’s banking system. Photo: China Daily via Reuters

Bloomberg

Published: 7:34pm, 25 Apr 2021Updated: 7:34pm, 25 Apr 2021

China Huarong Asset Management said its 2020 earnings results would be delayed past an April 30 deadline, potentially further fraying investors’ nerves after mounting worries over potential defaults by the state-owned bad-debt manager caused a meltdown in its bonds.

The company’s auditors need more time to finalise an unspecified transaction before it can publish the results, according to a statement posted on Chinamoney.com, which is run by China Foreign Exchange Trade System. Huarong reiterated that its operations are stable and all lines of business are running normally.

The firm, China’s largest distressed-asset manager, missed an earlier March 31 deadline to announce preliminary results, also saying that its auditors needed more time. The company’s shares have been suspended since April 1.

China Huarong’s initial delay of the announcement stoked concerns over its financial health and kicked off an almost two-week plunge in its dollar bonds. Three major credit firms, Moody’s Investors Service, Fitch Ratings and S&P Global Ratings, have put the company’s debt rating on review for a potential downgrade.

Lai Xiaomin, the former head of China Huarong Asset Management, was executed on January 29, 2021, on charges of taking bribes, an unusually harsh sentence for such a crime. Photo: CCTV via AP Video

The Hong Kong stock exchange, where the shares are listed, has a deadline of April 30 for companies to file final earnings results.

Bad-debt manager China Huarong once again delays results as auditors need time to ‘finalise unspecified transaction’

China Huarong Asset Management had missed an earlier March 31 deadline to announce preliminary results, saying that its auditors needed more time The Hong Kong stock exchange, where the shares are listed, has a deadline of April 30 for companies to file final earnings results

China Huarong Asset Management had missed an earlier March 31 deadline to announce preliminary results, saying that its auditors needed more time

The Hong Kong stock exchange, where the shares are listed, has a deadline of April 30 for companies to file final earnings results