HONG KONG (Reuters) – Shares of Huarong Asset Management Co Ltd fell as much as 55% in Hong Kong on Wednesday, hitting a record low, after resuming trading after a nine-month hiatus, despite managing bad loans. The company said its restructuring paved the way for healthy growth.
Huarong, the largest shareholder in China’s Ministry of Finance, incurred heavy losses and its former boss was convicted of bribery, leading to a state-orchestrated rescue plan last year.
Huarong’s share price was 0.46 HK dollars ($0.0590) on Wednesday, which is a decrease of more than half the value of the company compared to the previous trading session on May 31, 2021.
The price is also the lowest since Huarong’s initial public offering in 2015, representing a discount of nearly 50% of the company’s net asset value, reflecting investor pessimism.
(Reporting by Donnie Kwok and Samuel Sheen; Editing by Jacqueline Wong, Christian Schmolinger and Jerry Doyle; Editing by Thomas Cobos)
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