Citic Group to Buy 60% of China Huarong Financial Leasing from China Citic Financial Asset Management for $1.68 Billion, China Huarong Had Collapsed with $14 Billion Losses in 2020, China Huarong Received State Bailout & Citic Group Becomes Key Shareholder in 2021, China Huarong Asset Management Renamed to China Citic Financial Asset Management in 2024 January, Ex-Chairman Of China Huarong Asset Management Lai Xiaomin Sentenced to Death for Corruption & Receiving $277 Million In Bribes
31st May 2024 | Hong Kong
Citic Group has announced to buy 60% of China Huarong Financial Leasing from China Citic Financial Asset Management for $1.68 billion (CNY 12 billion). In 2020, China Huarong had collapsed with $14 billion losses. In 2021, China Huarong received bailout from China state-owned investors including Citic Group, China Insurance Investment and China Life Asset Management. In 2024 January, China Huarong Asset Management was renamed to China Citic Financial Asset Management. In January 2021, former Chairman of China Huarong Asset Management Lai Xiaomin was sentenced to death for corruption and receiving $277 million in bribes. More info below:
“ Citic Group to Buy 60% of China Huarong Financial Leasing from China Citic Financial Asset Management for $1.68 Billion, China Huarong Had Collapsed with $14 Billion Losses in 2020, China Huarong Received State Bailout & Citic Group Becomes Key Shareholder in 2021, China Huarong Asset Management Renamed to China Citic Financial Asset Management in 2024 January, Ex-Chairman Of China Huarong Asset Management Lai Xiaomin Sentenced to Death for Corruption & Receiving $277 Million In Bribes “
China Distressed Asset Manager China Huarong Buys 5% of Citic for $1.7 Billion at 29% Premium Over Last Closing Price of HKD 7.23, China Huarong Received State Bailout & Citic Group Becomes Key Shareholder in 2021
17th November 2023 – China distressed asset manager China Huarong has bought 5% of Citic Group for $1.7 billion at 29% premium over the last closing price of HKD 7.23 (16/11/23). In 2021, China Huarong Asset Management, China’s largest distressed debt manager which reported a record $15.9 billion loss in 2020 and with shares suspended since April 2021, received bailout from China state-owned investors including Citic Group, China Insurance Investment and China Life Asset Management. China Huarong Asset Management which focuses on managing bad-debts is one of China systemically important state-owned companies. Details on the bailout have yet to be finalised, though Citic Group is likely to gain control of China Huarong Asset Management. In January 2021, former Chairman of China Huarong Asset Management Lai Xiaomin was sentenced to death for corruption and receiving $277 million in bribes. More info below:
China Distressed Asset Manager China Huarong with $15.9 Billion Losses to Receive State Bailout, Citic Group Becomes Key Shareholder
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19th August 2021 – China Huarong Asset Management, China’s largest distressed debt manager which reported a record $15.9 billion loss in 2020 and with shares suspended since April 2021, will receive bailout from China state-owned investors including Citic Group, China Insurance Investment and China Life Asset Management. China Huarong Asset Management which focuses on managing bad-debts is one of China systemically important state-owned companies. Details on the bailout have yet to be finalised, though Citic Group is likely to gain control of China Huarong Asset Management. In January 2021, former Chairman of China Huarong Asset Management Lai Xiaomin was sentenced to death for corruption and receiving $277 million in bribes.
China Huarong Asset Management Bailout
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In the late 1990s after the Asian financial crisis, China Huarong Asset Management was created to buy bad loans from banks. Gradually, China Huarong expanded into other financial businesses and borrowed billions from the bond market. In 2015, China Huarong IPO in Hong Kong, raising $2.3 billion in capital.
In April 2021, China Huarong was suspended on Hong Kong Exchange (HKEX). On 18th August 2021, China Huarong Asset Management reported $15.9 billion of losses and to receive bailout from China state-owned investors including Citic Group, China Insurance Investment and China Life Asset Management. China Huarong Asset Management has around $242 billion of liabilities and $21 billion of offshore bonds. Details on the bailout have yet to be finalised, though Citic Group is likely to gain control of China Huarong Asset Management.
In January 2021, former Chairman of China Huarong Asset Management Lai Xiaomin was sentenced to death for corruption and receiving $277 million in bribes.
Citic Group was setup in 1979 and is one of the most important financial institution in China, and in 2020, former China central bank (People’s Bank of China) Deputy Governor Zhu Hexin was appointed as Chairman of Citic Group.
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