Huarong Rescue Team Hit by $4 Billion Paper Loss as Stock Sinks
- China Huarong resumes trading after a nine-month suspension
- Bad asset manager received $6.6 billion rescue package
The China Huarong Asset Management Co. headquarters in Beijing.
Photographer: Yan Cong/BloombergThis article is for subscribers only.
The state-controlled investors that were directed to bail out China Huarong Asset Management Co. suffered a loss of more than $4 billion as the bad asset manager resumed trading after a nine-month suspension.
Huarong slumped as much as 55% in Hong Kong as trading resumed after the firm last week completed a $6.6 billion state-orchestrated bailout. The tumble handed the group of state-backed investors, which had bought a total of 41.2 billion domestic and Hong Kong shares for 1.02 yuan apiece, a combined loss on paper of 26.4 billion yuan ($4.1 billion).