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China's Huarong to delay earnings results again, says auditors need more time

HONG KONG, April 26 (Reuters) - China Huarong Asset Management said it will miss an April 30 deadline to file its 2020 earnings results as auditors need more time - a second postponement that is likely to increase concern among the company’s already jittery bond investors.

Huarong had first planned to release results on March 31 but delayed that announcement citing the need to finalise a “relevant transaction”. That led to a suspension in trade of its shares and a selloff in its bonds.

The company, one of China’s four biggest distressed asset management firms, said in its Sunday statement that it was operating stably and business operations were normal.

The Hong Kong stock exchange requires companies to file earnings results by March 31 and publish their annual report by April 30. A representative for the bourse declined immediate comment.

Hurt by failed investments and aggressive expansion, Huarong has been in restructuring talks since 2018. Its former chairman, Lai Xiaomin, was executed in January after a graft probe.

Earlier this month, sources told Reuters that Chinese regulators have asked some banks not to withhold loans to embattled firm as part of support measures to stabilize its cash flow and reduce the risk of market contagion.

Reporting by Donny Kwok; Editing by Edwina Gibbs

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