What’s new: China Huarong Asset Management Co. Ltd. agreed to sell a 72% stake in its securities brokerage unit to a subsidiary of state-owned investment firm China Reform Holdings Corp. for 10.93 billion yuan ($1.72 billion), the state-owned bad asset manager said Thursday in a regulatory filing.
After the sale, Huarong will no longer own any interest in Huarong Securities. State-owned Guangzhou Industrial Investment Holdings Group owns 10.24% of the brokerage. The enterprise through its subsidiaries owns licenses for securities brokerage, futures trading, private equity and public offering of funds, justifying the sale price, industry participants said.
