China Huarong’s Key Offshore Unit Says It Returned to Profit
- Unit to focus on cutting risk exposure and ensuring liquidity
- Concerns about firm’s financial health has roiled investors
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China Huarong International Holdings Ltd., the key offshore financing arm of the nation’s embattled distressed loan manager, said it returned to profit in the first quarter and has laid a “solid” foundation for transformation as concerns persist over its ability to repay debt.
The unit, which issued or guaranteed most of China Huarong Asset Management Co.’s $22 billion in dollar bonds, will focus on cutting risk exposure and ensuring liquidity, it said in a statement posted on its WeChat account late Tuesday. All its operating indicators are meeting targets, the company said after holding a meeting on Monday to discuss first quarter operations.