BEIJING, Aug 3 (Reuters) - China Huarong Asset Management Co Ltd said on Tuesday that it plans to sell a 70% stake in a consumer finance unit, and restructure its trust subsidiary, as the Chinese bad loan company seeks to return to its core businesses to ensure sustainable operation.
Huarong, which counts China's finance ministry as its biggest shareholder, missed a March 31 deadline for filing its 2020 earnings, sparking a rout in its U.S. dollar-denominated bonds that spread to other issuers amid concern that a default could see foreign investors losing out.
In an exchange filing on Tuesday, Huarong said it plans to publicly transfer its 70% stake in Huarong Consumer Finance to external parties, citing regulatory requirements for financial asset management companies to gradually exit non-core businesses.
Huarong also said it will restructure its equity in Huarong Trust through "debt-to-equity swap and equity transfer" with main institution creditors.
The proposals require shareholder and regulatory approval.
Last month, Huarong announced plans to sell stakes in a distressed asset exchange unit, amid a regulatory push to sell non-core assets as part of its business revamp.
(Reporting by Shanghai Newsroom; Editing by Stephen Coates)
((samuel.shen@tr.com))
精彩评论