Huarong recovers as fears allayed

Business | Bloomberg 20 Apr 2021

China Huarong Asset Management's (2799) bonds rebounded after China's financial regulator said on Friday that the bad debt manager was operating normally and had ample liquidity.

That marks its first official comment since Huarong jolted Asian credit markets by missing a deadline to report earnings on March 31.

One of the state-owned company's US dollar bonds - a 3.375 percent note maturing in May 2022 - climbed to about 89 US cents (HK$2.72) after trading at 65 US cents on Wednesday, according to prices compiled by Bloomberg.

In a statement late Friday, Huarong said it will accelerate disposal of existing risks and keep focusing on its main business of non-performing loans. Huarong said it's working on its full-year earnings report with its auditor and will disclose it at an appropriate time.

Huarong's onshore securities unit said yesterday it had wired funds to fully repay a local bond due April 18. Reports that Huarong has prepared funds to pay a S$600 million (HK$3.5 billion) bond due April 27 helped trigger the rally in its offshore debt from record lows on Thursday.

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