China Huarong’s woes cause pain across Asia’s markets

China Huarong Asset Management_Alamy_575px_April 16 2021
By Morgan Davis
15 Apr 2021

Fears around the health of China Huarong Asset Management Co rattled investors this week and took a toll on Asia’s bond market. The bad debt manager’s dollar bonds have tumbled, bringing new issuance from China to a near halt and putting pressure on other state-linked credits in the secondary market. Morgan Davis reports.

The Chinese primary dollar bond market has been quiet this week, with only two of the country’s borrowers launching deals in the first three days. Most bankers, investors and issuers are instead closely watching the Huarong situation unfold, while grappling with what it could mean for other Chinese bonds.

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