China Huarong Panic Eases After Government Breaks Silence (2)

April 19, 2021, 10:23 AM

After two weeks of relentless losses, China Huarong Asset Management Co. bondholders are finally finding reasons for optimism.

Huarong bonds jumped after China’s financial regulator said on Friday that the bad-debt manager was operating normally and had ample liquidity, its first official comments since the company jolted Asian credit markets by missing a deadline to report earnings on March 31. While the regulator’s statement was hardly a full-throated pledge of government support, it was enough to cement a rally in Huarong bonds from record lows and ease fears of contagion. The gains continued on Monday.

One of the state-owned company’s ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.