Huarong Renames Itself 'China CITIC Financial Asset Management', Buys 5% Stake in CITIC Ltd

The move comes as part of efforts to improve the 'bad bank's' financial conditions following years of struggle and a government bailout in 2021.

China Huarong Asset Management, one of China's four 'bad banks', has renamed itself 'China CITIC Financial Asset Management' after its top shareholder, the state-owned financial conglomerate CITIC group.
Huarong has bought a 5% stake in CITIC's Hong Kong-listed unit, CITIC Ltd, at a 30% premium to Wednesday's closing price.
The name change and stake acquisition are seen as efforts to improve Huarong's asset quality and financial conditions, following years of financial struggle and a $6.6 billion government-orchestrated bailout in 2021.
Huarong's real estate woes contributed to a net loss of around $4 billion for 2022, and it reported a net loss attributable to equity holders of $676 million for the first half of 2023.
Despite the name change and stake acquisition, Huarong's troubles may still pose problems for CITIC, which incurred $1 billion in equity investment losses in 2022, mainly due to Huarong's poor performance.