Photographer: Qilai Shen/Bloomberg

HNA Group Units Plunge Amid Concerns About Debt, Halted Shares

  • Shares of Hainan HNA, HNA Innovation, HNA Investment drop
  • Declines come amid trading halts, speculation about HNA debts

Shares of HNA Group Co. units fell in Shanghai and Shenzhen trading after more of the conglomerate’s subsidiaries halted their stock from trading, pending "major"’ announcements.

Hainan HNA Infrastructure Investment Group Co. fell by the 10 percent daily limit in Shanghai on Monday, while HNA Innovation Co. slumped more than 9 percent. HNA Investment Group Co. sank as much as 5.4 percent.

Four HNA units -- HNA-Caissa Travel Group Co., Bohai Capital Holding Co., Tianjin Tianhai Investment Co. and flagship Hainan Airlines Holding Co. -- suspended their shares from trading this month ahead of unspecified announcements. Another unit, CCOOP Group Co., has halted its stock since November last year.

Goldman Sachs Group Inc. said in a report last week that HNA-related bonds have been underperforming amid speculation about the group’s ability to repay its debts, though the broker expects the Chinese conglomerate to ultimately be able to roll over its obligations.

Read more: Some ways HNA’s Hainan Airlines could restructure

HNA has been facing increasing pressure -- some banks are said to have frozen some unused credit lines to HNA units after they missed payments -- after a debt-fueled acquisition spree that left it with global assets ranging from hotels and refrigerated trucks to aviation and car rentals.

Read more: A QuickTake Q&A on HNA

— With assistance by Lianting Tu

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