Huarong shares plunge as trading resumes

Shares in China’s bad-debt manager Huarong Asset Management plummeted 40 percent on Wednesday as trading resumed in Hong Kong after a US$6.6 billion state-backed bailout of the embattled company.

The company’s Hong Kong-traded shares were suspended in April last year after it delayed its annual report, spooking Asian markets.

When Huarong published its results in August, it revealed a record US$15.9 billion loss for 2020 and outlined a rescue plan.

On Wednesday, its share price slid from HK$1.02 to HK$0.61 as markets opened and the group’s trading resumed.

The plunge follows a filing late Tuesday in which Huarong said it would return to its core business, adjust its structure, cut capital consumption and boost returns.

Business operations of the group would continue as usual, it added. (AFP)