China Huarong Delays Release of 2020 Results Past Deadline

Huarong Asset Management, China's largest distressed debt manager, is facing financial difficulties, having missed deadlines for publishing earnings results. This has led to market jitters and a review of its debt ratings by major agencies. Chinese regulators are considering options such as transferring stakes to a sovereign wealth fund or restructuring the company to avoid debt issues. The People's Bank of China may also intervene by taking on some of Huarong's debt. With $42 billion in bonds outstanding, a solution is urgent.

What was the consequence of Huarong Asset Management missing its earnings deadline?

• A sell-off in their dollar bonds

• An increase in stock prices

• A merger with another company

• An upgrade in credit ratings

Which entity is considering moving its stake in Huarong to a sovereign wealth fund?

• The International Monetary Fund

• The World Bank

• The People's Bank of China

• The Finance Ministry

What is one of the strategies Huarong is considering to avoid debt restructuring?

• Issuing more bonds

• Spinning off non-core parts of the business

• Acquiring smaller companies

• Increasing interest rates

What drastic measure is being considered by the People's Bank of China to help Huarong?

• Increasing Huarong's bond issuance

• Reducing interest rates

• Merging Huarong with another bank

• Taking on $15.4 billion of Huarong's debt

How much of Huarong's bonds are due by the end of 2022?

• $25 billion

• $17 billion

• $42 billion

• $10 billion