Caixin
Aug 30, 2022 06:47 PM
ECONOMY

China Bad Debt Managers See Earnings Tank on Property Losses

China Evergrande's Royal Peak residential development is under construction in Beijing on July 29.
China Evergrande's Royal Peak residential development is under construction in Beijing on July 29.

(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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