China Huarong announced late last week that it has agreed to sell its 72% stake in Huarong Securities, its brokerage unit, to a unit of state-owned investment firm China Reform Holdings Corp., as per Caixin Global. Huarong is expected to raise RMB 10.93bn ($1.72bn) from the deal, the company said in its exchange filing. Huarong will cease to own any interest in Huarong Securities after the transaction. Caixin reported that state-owned Guangzhou Industrial Investment Holdings Group owns 10.24% of the brokerage firm, which reported profits of RMB 85.86mn ($13.5mn) in 9M 2021. At the time, its net assets were valued at RMB 10.06bn ($1.58bn). This comes months after Huarong was bailed out by a consortium of state-owned firms, helping it avert default on its massive debt pile.
Huarong’s 4% Perps traded steady at 99.81 yielding 4.25%.
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