Lai Xiaomin was chairman of the board of China Huarong Asset Management from September 2012 to April 2018 before being sacked … and executed in January as part of a China crackdown on corruption.
Huarong owes around USD23bn in borrowings outside China …. and the question is if it will default or if China’s government will step in to ensure payment.
Report via Bloomberg is worth a read:
- “A default at a central state-owned company like Huarong is unprecedented,” said Owen Gallimore, head of credit strategy at Australia & New Zealand Banking Group. Should one occur, he said, it would mark “a watershed moment” for Chinese and Asian credit markets.