Because China Huarong Asset Management is so closely connected with other financial institutions, analysts say there are risks to the domestic and international financial systems. Photo: Reuters Because China Huarong Asset Management is so closely connected with other financial institutions, analysts say there are risks to the domestic and international financial systems. Photo: Reuters
Because China Huarong Asset Management is so closely connected with other financial institutions, analysts say there are risks to the domestic and international financial systems. Photo: Reuters
China economy

analysis | China seen bailing out biggest bad-debt manager while teaching investors a ‘hard’ lesson as contagion effects linger

  • Government wants to send a message that ‘even state-controlled institutions such as Huarong do not enjoy blanket government guarantees’
  • Other financial institutions are so closely tied to the bad-asset manager that letting it fail would pose considerable risks to the domestic and international financial systems

Topic |   China economy
Because China Huarong Asset Management is so closely connected with other financial institutions, analysts say there are risks to the domestic and international financial systems. Photo: Reuters Because China Huarong Asset Management is so closely connected with other financial institutions, analysts say there are risks to the domestic and international financial systems. Photo: Reuters
Because China Huarong Asset Management is so closely connected with other financial institutions, analysts say there are risks to the domestic and international financial systems. Photo: Reuters
READ FULL ARTICLE