China Huarong Asset Management Co. announced that it will be further delaying the release of its annual earnings beyond the April 30 deadline. The company released a statement on Chinamoney.com, which is run by China Foreign Exchange Trade System that stated, “As the transactions relating to the CNY bonds – 3.54% 2021s, 4.95% 2027s, 5% 2028s, 3.7% 2022s and 4.05% 2024 have not been confirmed, the auditors in charge of preparing the 2020 annual earnings are unable to complete it by April 30, 2021.” This will do little in terms of calming investors and will likely lead to continued volatility in its bond prices as investors are left guessing. This comes after new details emerged last week about Huarong’s planned restructuring that involved a PBOC-managed unit of China Cinda taking over $15bn worth of Huarong’s assets. The proposal was allegedly rejected by the PBOC and Ministry of Finance.
Huarong’s dollar bonds fell further with its 1.426% bonds due 2025 down 3.5% to 78.875 and its 3.375% bonds due 2030 down 2.45% to 79.5.
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