Huarong Posts $15.9 Billion Loss as Leverage Hit 1,333 Times
- Date: 30-Aug-2021
- Source: Yahoo News
- Sector:Financial Markets
- Country:Middle East
Huarong Posts $15.9 Billion Loss as Leverage Hit 1,333 Times
(Bloomberg) -- China Huarong Asset Management Co. reported a record loss as leverage hit 1,333 times in 2020 in a long overdue annual report, just a little more than a week after it secured a government-orchestrated bailout to keep it from the precipice.
Huarong reported a 102.9 billion yuan ($15.9 billion) loss for all of last year, slashing its shareholder equity by nearly 85%, the firm said in a filing on Sunday in Hong Kong. The bad loan manager booked 107.8 billion yuan in impairments and suffered a 12.5 billion yuan loss on financial assets. While it returned to a profit of 158 million yuan in the first half this year, Huarong’s key capital level was far below regulatory requirements as of June.