Huarong Secures Funding Backstop From State Banks Through August
- Lenders including ICBC to provide funds if needed, people say
- Huarong’s bonds have resumed declines in recent days
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China Huarong Asset Management Co. has reached funding agreements with state-owned banks to ensure it can repay debt through at least the end of August, by which time the company aims to have completed its 2020 financial statements, people familiar with the matter said.
The liquidity support, arranged under the guidance of China’s financial regulator, means Huarong can obtain financing from lenders such as Industrial & Commercial Bank of China Ltd. if needed, the people said, asking not to be identified as the matter is private. The distressed debt manager has been effectively shut out of the offshore bond market since the end of March, when it spooked investors by missing a deadline to disclose 2020 results.