China’s Huarong seeks up to $2 bln in stake sale

Reuters 24 June 2013
China’s Huarong Asset Management Corp plans to raise up to $2 billion by selling a stake of 15 percent to 20 percent, two sources told Reuters, becoming the country’s second asset management company to offer a minority stake to outsiders.
* Huarong net profit jumped 66 pct in 2012 to 6.96 bln yuan
* Huarong manages over 300 bln yuan of assets
* Huarong’s rival Cinda working with advisors for IPO (Adds details on Cinda deal, Huarong’s performance)
Huarong, established in 1999, is the biggest of the four funds that China’s government set up to remove an estimated 1.4 trillion yuan ($230 billion) worth of bad loans from the country’s top four state lenders as they were preparing for initial public offerings.
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