Blog: Huarong Contagion Risk Resurfaces at Peers That Owe $454 Billion – Yahoo Finance

  • Oops!
    Something went wrong.
    Please try again later.
Bloomberg News

·1 min read

1 / 2

Huarong Contagion Risk Resurfaces at Peers That Owe $454 Billion

  • Oops!
    Something went wrong.
    Please try again later.

(Bloomberg) — A selloff in China Huarong Asset Management Co.’s bonds is spreading to the nation’s other major bad debt managers.

The spread of a China Cinda Asset Management Co. unit’s 3% dollar note due 2031 over Treasuries widened to 242 basis points Tuesday, the most since mid-April. A China Orient Asset Management Co. unit’s 2.75% bond due 2030 closed at 231 basis points that day, the widest spread since the note was issued in November.

China Cinda, China Orient and China Great Wall Asset Management Co. have combined liabilities of 2.9 trillion yuan ($454 billion), including $28 billion of outstanding dollar bonds, according to their latest financial statements and data compiled by Bloomberg.

The three borrowers haven’t tapped the offshore bond market while uncertainty hangs over Huarong. The last sale of dollar debt by any of the firms and their units was China Cinda HK Holdings Co.’s $2 billion offering in January.

China’s finance ministry is considering a proposal to transfer its shares in Huarong and the three other bad-debt managers to a new holding company modeled after the one that owns the government’s stakes in state-run banks, Bloomberg News reported on Tuesday.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s