Huarong Cleared to Raise 70 Billion Yuan via Bond Sale as Part of Rescue Plan

China Huarong Asset Management Co. Ltd. has won regulatory approval to sell bonds to raise as much as 70 billion yuan ($10.95 billion), three months after a government-backed rescue plan was secured to salvage the debt-ridden distressed-asset manager.

The proceeds must be used mainly for its main business such as the acquisition and disposal of nonperforming assets and debt-to-equity swaps, the China Banking and Insurance Regulatory Commission said (link in Chinese) on its website on Tuesday. The announcement, which was dated Nov. 11, said Huarong should strictly abide by the regulations for issuing financial bonds and disclosing information and provide a written report about the issuance to the commission within a month of its completion.