China Bad Debt Managers See Earnings Tank on Property Losses
(Bloomberg) — China Huarong Asset Management Co. Ltd. and China Cinda Asset Management Co. Ltd., the nation’s two largest state-owned distressed debt funds, reported a slump in first-half earnings as credit impairments surged on a deepening property crisis.
Net income for the first six months at Cinda dropped 33% to 4.51 billion yuan ($652 million), after impairment losses on assets jumped 85%, according to an exchange filing. Huarong on Monday posted a net loss of 18.87 billion yuan for the same period, compared with a profit of 158.3 million yuan a year ago, as impairment charges more than tripled.
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