China Huarong said that its auditors need more time to complete their audit as they require more information. They added that they cannot determine when they would publish their 2020 earnings. In a note last month, S&P analysts mentioned, “If Huarong International fails to deliver the results by the deadline stipulated in the bond terms, it will be in technical default”, and not constitute an event of default under the terms and conditions of their bonds. Huarong was required to publish its annual results within 180 days from end of FY2020 at which time they delayed the publication citing auditors needed more time to review the books as certain relevant transactions were yet to be determined. Separately, the company has appointed Liang Qiang as president after the board approved the proposal. Mr. Qiang was a former deputy Communist Party chief and executive director at China Great Wall AMC.
Huarong’s bonds were trading weak – its 3.375% 2030s were down 2.3 to 69.2.
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