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
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
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
