Bulletin: China Signals State Support For Huarong With RMB42 Billion Injection - S&P Global Ratings’ Credit Research

Bulletin: China Signals State Support For Huarong With RMB42 Billion Injection

Bulletin: China Signals State Support For Huarong With RMB42 Billion Injection - S&P Global Ratings’ Credit Research
Bulletin: China Signals State Support For Huarong With RMB42 Billion Injection
Published Nov 22, 2021
3 pages (1326 words) — Published Nov 22, 2021
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Abstract:

HONG KONG (S&P Global Ratings) Nov. 22, 2021--S&P Global Ratings said today that an injection of Chinese renminbi (RMB) 42 billion into China Huarong Asset Management Co. Ltd. (Huarong; BBB/Negative/A-2) won't affect our ratings on the entity. The size of the injection is consistent with our expectation that the firm is likely to be supported by the state. We continue to view Huarong as a government-related entity (GRE) for now. The Ministry of Finance oversaw the capital injection into the entity. The capital will come from a consortium of central government-owned investors. This is in line with our assessment of a very high likelihood that the Chinese distressed asset manager would receive extraordinary government support, if needed. Following the capital

  
Brief Excerpt:

...November 22, 2021 HONG KONG (S&P Global Ratings) Nov. 22, 2021--S&P Global Ratings said today that an injection of Chinese renminbi (RMB) 42 billion into China Huarong Asset Management Co. Ltd. (Huarong; ###/Negative/A-2) won't affect our ratings on the entity. The size of the injection is consistent with our expectation that the firm is likely to be supported by the state. We continue to view Huarong as a government-related entity (GRE) for now. The Ministry of Finance oversaw the capital injection into the entity. The capital will come from a consortium of central government-owned investors. This is in line with our assessment of a very high likelihood that the Chinese distressed asset manager would receive extraordinary government support, if needed. Following the capital injection, the Ministry of Finance will remain the largest shareholder with its direct ownership diluted to about 28% from more than 50%. CITIC Group Corp. will become the second largest shareholder with a stake of...

  
Report Type:

Bulletin

Issuer
China Huarong Asset Management Co. Ltd.
GICS
Asset Management & Custody Banks (40203010)
Sector
Global Issuers
Country
China
Region
Emerging Markets
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: China Signals State Support For Huarong With RMB42 Billion Injection" Nov 22, 2021. Alacra Store. May 19, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-China-Signals-State-Support-For-Huarong-With-RMB42-Billion-Injection-2759633>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: China Signals State Support For Huarong With RMB42 Billion Injection Nov 22, 2021. New York, NY: Alacra Store. Retrieved May 19, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-China-Signals-State-Support-For-Huarong-With-RMB42-Billion-Injection-2759633>
  
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