Staff cuts as Huarong continues to repair damage of corruption investigation
Created itself in 1999 to manage bad loans of state-owned banks, crisis-hit state-owned distressed asset manager has had a growing number of risky borrowings exposed
China Huarong Asset Management, the country’ largest state-owned distressed asset manager, is axing overseas staff and looking for significant domestic pay cuts too, three months after the Communist Party disciplinary authority put its former boss under corruption investigation.
Huaring's human resources department posted a notice on its internal system late on Monday night, announcing the firm would start accepting resignation requests from staff.
Mainland employees have also since April been required to submit their personal travel passports to the company, so the authority can avoid any suspicious moving of assets offshore as its widens its investigation, sources said.
Huarong has three Hong Kong listed units, as well as branches and subsidiaries all over the country.
Sources say the company is also now mulling over a significant pay cut for at least a quarter of all staff while some of its Hong Kong subsidiaries have already started laying off people.
