HNA Share Pledges Are Behind Frozen Bank Accounts

Ningbo found HNA to have used collateral for another loan
Group unit had also faced margin call after shares fell

A pedestrian walks past the HNA Group Co. building in Beijing, China, on Wednesday, Aug. 9, 2017. Big Chinese dealmakers including HNA have been under increasing scrutiny this year as the Communist Party steps up its clampdown of capital outflows to protect the yuan from weakening further.Photographer: Qilai Shen/Bloomberg

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By Bloomberg News

January 25, 2018 at 6:35 AM UTC

Updated on

January 25, 2018 at 9:40 AM UTC

This article is for subscribers only.

A creditor of an HNA Group Co. unit found that the company put up some shares as collateral for multiple loans, resulting in a temporary freeze of related bank accounts, according to people with knowledge of the matter.

Ningbo Commerce Bank lent 450 million yuan ($71 million) to HNA Technology Group Co., backed by 70 million shares of Shanghai-listed unit Tianjin Tianhai Investment Co., said two of the people, who asked not to be named discussing a private matter. After determining that those shares were pledged to another creditor, Ningbo Commerce sought to freeze related bank accounts, the people said. A representative for Ningbo Commerce declined to comment.