Citic Becomes China Huarong’s Largest Shareholder in Overhaul

Vehicles travel past the China Huarong Asset Management Co. headquarters on Financial Street in Beijing on Wednesday, May 19, 2021. Photo: Bloomberg

(Bloomberg) — China Huarong Asset Management Co. said state-owned Citic Group will replace the Ministry of Finance as its largest shareholder, marking the latest step in the overhaul of the troubled bad-debt manager.

Citic Group will receive 2.41 billion domestic Huarong shares from the ministry to “optimize the layout of state-owned financial capital,” according to an exchange filing Tuesday. The transfer would increase Citic’s stake in Huarong to 26.46%, and bring the ministry’s ownership down to 24.76%.