Chinese scandal-ridden investment firm shares drop 50% after $6.6bn state bailout
1/5/2021- 7:45 a.m.
Chinese scandal-ridden investment firm shares drop 50% after $6.6bn state bailout
China Huarong Asset Management closed trading Tuesday 50% down after a state-funded bailout totalling around $6.6bn following the end of their 9-month suspension from the HK Stock Exchange.
The sharp drop comes almost a year after former president Lai Xiaomin was executed for corruption, bribery and bigamy. Last August the company report record losses of around $16bn for 2020.
Huarong’s major shareholder is China’s Finance Ministry and is one of four state-owned bad debt managers.
