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China Huarong sells 70% stake in its consumer finance unit to Bank of Ningbo

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BEIJING: China Huarong Asset Management Co said on Monday that it will sell a 70 per cent stake in its consumer finance unit for 1.1 billion yuan (US$172.64 million) to Bank of Ningbo, as Huarong continues to divest assets as part of a business revamp. After the completion of the deal, Huarong Consumer Fin

BEIJING: China Huarong Asset Management Co said on Monday that it will sell a 70 per cent stake in its consumer finance unit for 1.1 billion yuan to Bank of Ningbo, as Huarong continues to divest assets as part of a business revamp.

Huarong and Bank of Ningbo reached an equity transfer deal on Dec 27, and it is still subject to regulatory approval, it said. The bonds then rose in August after it revealed a state-backed rescue plan, under which a consortium led by the state-owned Citic Group Corp agreed to make a strategic investment in it.

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