Exclusive | Huarong’s client list offers a peek into how China’s financial ‘crocs and rhinos’ fund their forays
Five of its 18 biggest clients among China’s largest corporates, but there’s also troubled Hanergy and Dandong Port, and a Cayman Isles-registered private property agent
China Huarong Asset Management, the mainland’s largest bad-debt manager, has been active in funding the country’s biggest corporate borrowers, including a number of companies and individuals firmly under the regulatory spotlight, according to a list circulated following the detention of its chairman last week for suspected graft.
The line-up is a venerable Who’s Who of China’s biggest corporate borrowers, but also offers an intriguing glimpse into the murky workings of some of the country’s financing, when non-bank institutions have stepped into provide funding when stringent lending guidelines fail.
Established in 1999 to manage the bad loans of state-owned banks, Huarong has transformed itself into a financier active in lending through a variety of financial products, thanks to strong levels state credit and a powerful portfolio of financial service licenses.
Head of China’s largest bad-debt manager under corruption probes
Five of its 18 biggest clients were among China’s largest corporate borrowers. These include HNA Group, the energy and financial conglomerate CEFC China Group, Huishan Dairy, Hanergy Thin Film Power Group, and Dandong Port Group, according to a list seen by the South China Morning Post.
The list, issued by the load manager’s head office, was intended to provide a picture of its exposure to the related firms as soon as possible, a source said.
The list also revealed that Huarong acted as lender to a number of shadowy groups.
