(Reuters) China Huarong Asset Management Co. stock hit a record low on Wednesday, after falling up to 55% as trading resumed after a nine-month pause.
Investors defied the bad loan company’s reassurances that its restructuring had placed it for healthy growth.
Huarong management said that capital boosts by strategic investors will add fresh life to the company. The company generated 42 billion yuan from investors led by Citic Group.
Huarong now seeks to focus on key business in future and bring in strategic investors to attract new synergies for growth. The company had announced several asset divestment deals in the past as it sought to revamp operations.
The resumption of trading happens since the shares were halted in April 2021, after the company missed a filing for its 2020 earnings.
The company said it had sold shares to strategic investors at 1.02 yuan per piece in a private placement, taking its net asset value per share up 60% to 0.75 yuan.
Huarong reported an annual loss of almost $16 billion for 2020 in August, before embarking on a restructuring plan in November.
2799: HKG is down -50.00%.
