China Huarong Asset Management Co. expects to post a net loss of about 27.6 billion yuan ($4 billion) for 2022.
(Bloomberg) — China Huarong Asset Management Co. expects to post a net loss of about 27.6 billion yuan ($4 billion) for 2022.
The bad-debt manager cited factors including volatility in the capital market leading to declines in the value of some assets as contributing to the loss, according to a statement to the Hong Kong exchange Sunday.
Huarong trimmed its losses by around 10.1 billion yuan in the second half of 2022, marking “positive momentum” compared to the first half, it said.
Other considerations included the macroeconomic situation and the downturn in the real estate industry, leading to increased provisions for credit impairment losses, as well as adjustments to its business layout.
The company roiled Asian credit markets in 2021 as it failed to release its annual report on time, eventually revealing a massive loss for 2020. It later received a $6.6 billion government-orchestrated bailout.
China suspended the operations of Deloitte Touche Tohmatsu Ltd.’s Beijing office for three months and imposed an unprecedented fine on the firm over lapses in its auditing work of Huarong from 2014 to 2019. It also fined Huarong itself and seven of its subsidiaries.
Read More: Deloitte Hit by Record China Fine, Suspension Over Huarong
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