China CITIC Financial Asset Management
{{Short description|State-owned asset management company}}
{{Use dmy dates|date=May 2024}}
{{Infobox company
| name = China CITIC Financial Asset Management Co., Ltd.
| logo = China CITIC Financial Asset Management.png
| image = 中国华融.jpg
| image_caption = Headquarters in Beijing
| native_name = 中国中信金融资产管理股份有限公司
| former_name = China Huarong Asset Management Co., Ltd.
| type = Public
| traded_as = {{hkse|2799}}
| ISIN = CNE100002367
| founded = {{Start date and age|df=y|1999|11|11}}
| location_city = Beijing
| location_country = China
| key_people = Liu Zhengjun (Chairman)
Li Zimin (President)
| area_served = China (Mainland and Hong Kong)
| industry = Financial services
| revenue = {{increase}} {{CNY|link=yes|75.8 billion}}
| revenue_year = 2023
| net_income = {{increase}} {{CNY|212.07 million}}
| net_income_year = 2023
| assets = {{increase}} {{CNY|968.10 billion}}
| assets_year = 2023
| equity = {{increase}} {{CNY|48.04 billion}}
| equity_year = 2023
| num_employees = 5,800 (2023)
| parent = CITIC Group
| owner = {{ubl|CITIC Group (26.46%)|Ministry of Finance (24.76%)}}
| homepage = {{URL|www.chamc.com.cn}}
| footnotes = in a consolidated basis{{cite web |title=2023 Annual Report |url=https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0426/2024042603323.pdf |website=HKEX}}
}}{{Infobox Chinese
| title = China Huarong Asset Management Co., Ltd.
| s = 中国华融资产管理股份有限公司
| t = 中國華融資產管理股份有限公司
| p = Zhōngguó huá róng zīchǎn guǎnlǐ gǔfèn yǒuxiàn gōngsī
| order = st
}}
China CITIC Financial Asset Management (previously known as China Huarong) is a majority state-owned financial asset management company in China, with a focus on distressed debt management.{{Cite web|title=2799.HK - China Huarong Asset Management Co Ltd Profile|url=https://www.reuters.com/companies/2799.HK|access-date=8 June 2021|website=Reuters|language=en}} It was one of the four asset management companies that the Government of China established in 1999 in response to the 1997 Asian financial crisis.
History
On 11 November 1999, China Huarong was incorporated in Beijing as China Huarong Asset Management Corporation ({{zh|s=中国华融资产管理公司}}), which was one of the four asset management companies as approved by the State Council of the People's Republic of China. In 2000, China Huarong began acquiring a non-performing loan of RMB 407,696 million from the Industrial and Commercial Bank of China.{{Cite web|title=Public asset management companies in East Asia - Case study|url=https://www.bis.org/fsi/fsipapers03cs.pdf}} The company later became a limited company: China Huarong Asset Management Co., Ltd. ({{zh|s=中国华融资产管理股份有限公司}}) in 2012.{{Cite web|url=http://www.chinanews.com/cj/2016/08-30/7988753.shtml|title = 中国东方资产管理股份有限公司成立-中新网}}
In August 2014, China Huarong introduced seven strategic investors, including Warburg Pincus, CITIC Securities International, Khazanah Nasional, China International Capital Corporation, COFCO Group, Fosun International, and Goldman Sachs while the Ministry of Finance of the People's Republic of China remained the majority controlling shareholder and China Life Insurance Group increased its shareholding.{{cite web |url=http://www.chamc.com.cn/en/AboutUs/Milestones/index.shtml |title=Milestones_CHAMC |website=www.chamc.com.cn |access-date=22 May 2022 |archive-url=https://web.archive.org/web/20151125113717/http://www.chamc.com.cn/en/AboutUs/Milestones/index.shtml |archive-date=25 November 2015 |url-status=dead}}http://www.hkexnews.hk/listedco/listconews/SEHK/2015/1030/a5602/ECHINAHUARONG-20150702-06.PDF {{Bare URL PDF|date=March 2022}}
In October 2015, China Huarong raised HK$17.8 billion through an initial public offering (IPO), offering 5.77 billion new shares in Hong Kong.{{cite web |title=China Huarong raises $2.3bln in Hong Kong IPO-IFR |website=Reuters |archive-url=https://web.archive.org/web/20160315023005/https://www.reuters.com/article/chinahuarong-ipo-pricing-idUSL3N12N01U20151023 |archive-date=15 March 2016 |url-status=live |url=https://www.reuters.com/article/chinahuarong-ipo-pricing-idUSL3N12N01U20151023#jWibsKKdIBI3J5Xg.97}}
=Trial and execution of Lai Xiaomin=
{{main|Lai Xiaomin}}
In April 2018, the Central Commission for Discipline Inspection, and the National Supervisory Commission launched an investigation into possible "serious violations of discipline and laws" of Lai Xiaomin, the Chairman of China Huarong Asset Management, and the Chinese Communist Party Committee Secretary for Huarong.{{Cite web |title=《赖小民案涉案财物近17亿元已追缴》 |url=http://www.xinhuanet.com/legal/2020-08/14/c_1126365392.htm |archive-url=https://web.archive.org/web/20200827060110/http://www.xinhuanet.com/legal/2020-08/14/c_1126365392.htm |archive-date=27 August 2020 |access-date=26 August 2020 |website=Xinhua Net}} As Huarong's Party Secretary, he emphasized in 2015 that during the operation of China Huarong Asset Management, the Chinese Communist Party (CCP) committee inside the company should play a central role, and party members should play an exemplary role.{{Cite web |title=《中国华融党委书记、董事长赖小民赴广东分公司调研 强调全系统要总结、学习、推广"广东经验"助推中国华融转型发展》 |url=http://m.hiqyj.com/list.asp?num=17347 |archive-url=https://web.archive.org/web/20200827022726/http://m.hiqyj.com/list.asp?num=17347 |archive-date=27 August 2020 |access-date=26 August 2020}} On 15 October 2018, Lai Xiaomin was expelled from the CCP. On 11 August 2020, the No. 2 Intermediate People's Court of Tianjin opened a public hearing on the case of bribery, corruption, and bigamy of Lai Xiaomin. The indictment alleges that Lai Xiaomin accepted 1.788 billion yuan in bribes, and illegally occupied public funds 25.13 million Yuan.{{Cite web |title=《赖小民案涉案财物近17亿元已追缴》 |url=http://www.xinhuanet.com/legal/2020-08/14/c_1126365392.htm |archive-url=https://web.archive.org/web/20200827060110/http://www.xinhuanet.com/legal/2020-08/14/c_1126365392.htm |archive-date=27 August 2020 |access-date=26 August 2020 |website=Xinhua Net}} On 5 January 2021, Lai was found guilty of receiving 1.79 billion yuan ($277.3 million) in bribes and bigamy and was sentenced to death without reprieve for bribery, embezzlement, and bigamy.{{Cite web|title=Why China Is Sentencing a Tycoon to Death|url=https://finance.yahoo.com/news/why-china-sentencing-tycoon-death-225728654.html|access-date=17 April 2021|work=Yahoo Finance|date=5 January 2021 |language=en}} His private assets were seized as well.{{cite news |title=Lai Xiaomin, ex-chair of China Huarong Asset Management, gets death for graft |url=https://www.thestandard.com.hk/breaking-news/section/2/162653/-Lai-Xiaomin,-ex-chair-of-China's-Huarong-Asset-Management,-gets-death-for-graft |access-date=17 April 2021 |work=The Standard |date=5 January 2021}} The sentence was carried out on 29 January 2021.{{cite news|title=China executes ex-banker Lai Xiaomin in corruption, bigamy case|url=https://www.france24.com/en/asia-pacific/20210129-china-executes-ex-banker-lai-xiaomin-in-corruption-bigamy-case|access-date=17 April 2021|work=France 24|date=29 January 2021}}
=2021 Bond selloff and default fears=
In April 2021, offshore U.S. dollar bonds issued by China Huarong plunged in value. The selloff came after the company missed an end-March deadline to release its 2020 financial results.{{cite news |last1=Ping |first1=Chong Koh |last2=Yu |first2=Xie |title=Chinese Asset Manager Suffers Bond Selloff After Delaying Results |url=https://www.wsj.com/articles/chinese-asset-manager-suffers-bond-selloff-after-delaying-results-11618496945 |access-date=17 April 2021 |work=Wall Street Journal |date=15 April 2021}} Fears of a near-term default were eased after the company was said to have prepared funds for full repayment of S$600 million ($450 million) offshore bonds due 27 April.{{cite news |title=China's Very Bad Bank: Inside the Huarong Debt Debacle |url=https://www.bloomberg.com/news/articles/2021-04-15/china-s-very-bad-bank-inside-the-huarong-debt-debacle |access-date=17 April 2021 |work=Bloomberg News |date=14 April 2021 |language=en}} To reduce the risk of market contagion and to stabilize its cash flow, Chinese regulators asked Chinese banks to provide loans to China Huarong.{{cite news |title=China asks banks not to withhold loans to asset manager Huarong |url=https://www.reuters.com/world/china/exclusive-china-asks-banks-not-withhold-loans-asset-manager-huarong-sources-2021-04-16/ |access-date=17 April 2021 |work=Reuters |date=16 April 2021}}
In August 2021, CITIC Group became China Huarong's largest shareholder with a nearly 26.5 percent stake after a group of state-owned investors bought into the company.
= 2022 to present =
In January 2024, the company was renamed to China CITIC Financial Asset Management.{{Cite web |last=Qi |first=Ning |date=26 January 2024 |title=Chinese 'Bad Bank' Huarong Gets a Makeover |url=https://www.yicaiglobal.com/news/bad-bank-china-huarong-rebrands-as-china-citic-financial-assets-mngmt |access-date=23 May 2024 |website=www.yicaiglobal.com |language=en}}
Subsidiaries
- Huarong International Financial ({{SEHK|993}})
Equity investments
- Baiyin Nonferrous (0.30%)
- Fenxi Mining Industry Group
- Taiyuan Coal Gasification Group (2.46%)
- Xinjiang Ba Yi Iron and Steel Group (7.95%)
- Fullshare Holdings (9.88% indirectly){{Cite web |date=20 April 2017 |title=2016 Annual Report |url=http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0420/LTN20170420219.pdf |access-date=29 July 2017 |publisher=Fullshare Holdings |pages=102–103 |quote=Reference is made to the disclosure of interest forms dated 21 December 2016 of Superb Colour, published on the Stock Exchange's website. Superb Colour is interested in 1,948,613,450 Shares. Superb Colour is a wholly owned subsidiary of China Huarong International, which in turn is owned as to 88.1% by Huarong Real Estate. Huarong Real Estate is a wholly owned subsidiary of China Huarong Asset, a State-owned entity, which in turn is owned as to 63.36% by the MFC. As such, each of China Huarong International, Huarong Real Estate, China Huarong Asset and the MFC is deemed to be interested in the said Shares under the SFO.}}
Former
- Wanhua Industrial Group (15.04%)
References
{{Reflist|30em}}
External links
- {{official website}}
{{authority control}}
{{CITIC}}
Category:Companies listed on the Hong Kong Stock Exchange
Category:Investment management companies of China
Category:Financial services companies of China
Category:Government-owned companies of China
Category:2023 mergers and acquisitions