Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

HK Type 4 license through Ballingal Investment Advisors Ltd. 

I'm a highly experienced sell-side analyst with in excess of 22 years of covering Asia Pacific equities, the past 19 years immersed in event strategies encompassing M&A risk arbitrage, directional long/short, stub trades and restructuring.  

My background also includes accountancy (liquidation/bankruptcy/receivership) earlier in my career and as a chief financial officer of a global commodity company based in the US and Mexico.

Pan-Asia Catalysts/Events

China Huarong (2799 HK)'s Full Circulation

Full Circulation 2022 Update: China Huarong, YiChang HEC ChangJiang

China Huarong Asset Management (2799 HK): This Is Manageable

China Huarong: Contagion Creates Opportunity

China Cinda Asset – Negativity Priced In

Quiddity Advisors

Event-Driven

China Huarong Asset Management / Event-Driven

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<a href="https://www.smartkarma.com/entities/china-huarong-asset-management" target="_blank" data-smartkarma-citation="entities:968:1" rel="noopener">China Huarong Asset Management (2799 HK)</a> was<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0401/2021033101720.pdf" target="_blank" rel="noopener"></a> <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2021/0401/2021033101720.pdf" target="_blank" rel="noopener">suspended</a> on the 1 April 2021 after failing to despatch its 2020 annual report. It remains suspended.
Yet the bigger issue was the distressed asset manager's US$22bn of dollar-denominated bonds. 
A damaging commentary from Caixin Media last week speculating of a possible bankruptcy sent some of Huarong's bonds into free fall. The near-dated 2022 bonds touched a low of 67.7 cents. The 4.5% perps dipped below 50 cents.
The 2022 3.375% bonds
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/202/156/original/image_18891551441619084449487.png?1619084450" class="editor-image img-responsive" data-smartkarma-image-id="202156"></figure>
The 4.5% perpetual bonds
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/202/155/original/image_58242332231619084400903.png?1619084401" class="editor-image img-responsive" data-smartkarma-image-id="202155"></figure>
In <a href="https://skr.ma/Q1rV4" target="_blank" rel="noopener">China Huarong Asset Management (2799 HK): This Is Manageable</a>, I reckoned a systematic restructuring process was a more likely outcome here as opposed to a less-than-optimal major debt restructuring.
Reportedly the central bank is now considering taking on RMB100bn of assets from Huarong, towards refocusing the company on distressed debt. Under "recently departed" Lai Xiaomin, Huarong expanded well beyond its original mandate of managing distressed debt.
I thought the bonds at ~70c looked interesting. That was the right call though it has been bumpy.
More below the fold.
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<hr>
The title hijacks Wellington's comment about Waterloo, wherein he said: "A damned nice thing ... the nearest-run thing you ever saw in your lif


China Huarong Asset Management (2799 HK) was suspended on the 1 April 2021 after failing to despatch its 2020 annual report. It remains suspended.
Yet the bigger issue was the distressed asset manager's US$22bn of dollar-denominated bonds. 
A damaging commentary from Caixin Media last week speculating of a possible bankruptcy sent some of Huarong's bonds into free fall. The near-dated 2022 bonds touched a low of 67.7 cents. The 4.5% perps dipped below 50 cents.
The 2022 3.375% bonds

The 4.5% perpetual bonds

In China Huarong Asset Management (2799 HK): This Is Manageable, I reckoned a systematic restructuring process was a more likely outcome here as opposed to a less-than-optimal major debt restructuring.
Reportedly the central bank is now considering taking on RMB100bn of assets from Huarong, towards refocusing the company on distressed debt. Under "recently departed" Lai Xiaomin, Huarong expanded well beyond its original mandate of managing distressed debt.
I thought the bonds at ~70c looked interesting. That was the right call though it has been bumpy.
More below the fold.


The title hijacks Wellington's comment about Waterloo, wherein he said: "A damned nice thing ... the nearest-run thing you ever saw in your lif

China Huarong Asset Management (2799 HK): Not A Near Run Thing