China Asks Citic Group to Examine Huarong’s Finances

  • State-owned financial conglomerate has sent a team to Huarong
  • Unclear what, if anything, may result from Citic’s involvement
WATCH: China has asked Citic Group, one of the biggest state-owned conglomerates, to examine the finances of embattled distressed-debt manager China Huarong, (Source: Bloomberg)
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China has asked one of its biggest state-owned conglomerates to examine the finances of China Huarong Asset Management Co., people familiar with the matter said, adding a new twist to the drama that has roiled the world’s second-largest credit market for months.

Citic Group, whose businesses span everything from banking to securities and mining, recently dispatched a team to Huarong to pore over the embattled distressed-debt manager’s books, the people said, asking not to be identified discussing private information.