The asset management giant announced a loss of 27.

Original Title: Asset Management Giant Announces: An Advance Loss of 27.6 Billion Yuan!

As for the reasons for losses, China Huarong listed three main reasons in the announcement: First, due to the impact of fluctuations in the capital market, the fair value valuation of some equity financial assets has declined, resulting in significant floating losses. The second is to optimize and adjust the business layout, and gradually reduce the scale and revenue of acquisition and restructuring of non performing debt assets. Third, due to the macroeconomic situation and the downward impact of the real estate industry, the provision for credit impairment losses increased.

Last August, China Huarong released semi-annual report data showing that in the first half of 2022, China Huarong's total revenue from continuing operating activities was 14.742 billion yuan, a year-on-year decrease of 55.8%, and the loss attributable to the company's shareholders was 18.866 billion yuan. By comparing the data in the semi-annual and annual reports, it can be seen that China Huarong continued its loss trend in the second half of 2022, but the degree of loss slightly improved.

On the evening of March 19th, a spokesperson for China Huarong News answered reporters' questions on market concerns, focusing on market concerns such as work effectiveness, main business transformation, and risk mitigation since joining CITIC Group. A news spokesman said that since the second half of 2022, various business indicators of Huarong Company have improved significantly, and various work has run out of "acceleration". The overall situation of business development is stable, and the overall trend of improvement has taken shape.

He pointed out that effectively preventing and resolving major economic and financial risks is a major focus of economic work this year. As a financial asset management company, it is necessary to give full play to the rescue financial function. In terms of resolving real estate market risks, as of the end of December 2022, China Huarong has launched 27 real estate enterprise rescue projects, and it is expected that relevant projects will ensure the timely delivery of about 37000 commercial housing units, driving the resumption of work and production of about 92 billion yuan projects. In terms of supporting the reform of small and medium-sized financial institutions into insurance, in 2022, China Huarong launched the first national pilot project for the disposal of non-performing loans of small and medium-sized banks. The annual acquisition of non-performing assets of small and medium-sized banks amounted to 30.6 billion yuan.

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