China Huarong Asset Management Co., Ltd., the biggest state-owned Chinese distressed debt management firms, has officially established a financial asset management company in Macau, to support the "One Belt, One Road" initiative, the company announced yesterday.
Huarong Macau, which has a registered capital of US$29.2 million, will leverage the parent company's network to serve the Greater China region on projects that fit the Belt and Road Initiative, a strategy proposed by Chinese president Xi Jinping that focuses on connectivity and cooperation among countries between China and the rest of Eurasia. The two main components of the initiative are the land-based "Silk Road Economic Belt" and oceangoing "Maritime Silk Road."
The Macau subsidiary will also take advantage of the Hengqin Free Trade Zone to provide innovative and diversified financial services to support economic development in the Special Administrative Region, Huarong chairman Lai Xiaomin said.
The business scope of Huarong Macau includes management and investment consulting, corporate management consulting, financial consulting, risk management consulting, economic and trade consulting and management of its commercial investment.
The company also signed a strategic cooperation agreement with Nam Kwong (Group) Co. Ltd, Asia Investment Finance Group Co., Ltd, Guangdong Namyue (Group) Co., Ltd and China Taiping Insurance (Macau) Co., Ltd.
China Huarong was one of four state-owned "bad banks" established by China in 1999 to manage the country's souring bank loans. The company was listed on the Hong Kong Stock Exchange in 2015.
Earlier this month, China's Silk Road Fund, a US$40 billion state-owned investment vehicle to foster increased investment along the silk road, agreed to acquire a 10% stake in SIBUR Holding, Russia's largest gas processing and petrochemicals company.