China Huarong Asset Management Co.’s long-delayed 2020 results showed a record loss.
BEIJING: China Huarong Asset Management Co.’s long-delayed 2020 results showed a record loss, with leverage hitting 1,333 times and capital buffers far short of the regulatory minimum, emphasizing the difficult task ahead for the bad-debt manager that recently secured a government bailout.
Huarong reported a 102.9 billion yuan ($15.9 billion) loss for all of last year, slashing shareholder equity by nearly 85%, according to a Sunday exchange filing. The company booked 107.8 billion yuan in impairments and suffered a 12.5 billion yuan loss on financial assets. While it returned to a small profit in the first half this year, Chairman Wang Zhanfeng said the firm will apply to the regulator for temporary tolerance with key capital measures below requirements as of June.
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