HONG KONG/SHANGHAI, June 24 (Reuters) - 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 sell a minority stake to outsiders.
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.
Huarong has invited banks to make pitches to win an advisory role in the sale, and recently appointed one to run the process, according to one of the sources, who asked not to be named as the information was not public yet.
Huarong was not immediately available for comment. ($1 = 6.1329 Chinese yuan) (Reporting by Denny Thomas and Samuel Shen; Additional reporting by Elzio Barreto in Hong Kong; Editing by Michael Flaherty and John Mair)