Exclusive: Citic Group Likely to Become Huarong’s Biggest Shareholder

Financial giant Citic Group Corp. is likely to become China Huarong Asset Management Co. Ltd.’s largest shareholder, as the Ministry of Finance intends to transfer part of its holdings in the troubled bad-debt manager to Citic in the next few years, sources with knowledge of the issue told Caixin.

Huarong on Wednesday reached agreements to sell shares worth 42 billion yuan ($6.6 billion) to five strategic and financial investors, including Citic, the company said in a filing to the Hong Kong Stock Exchange (HKEX).