CHINA Huarong Asset Management Co.’s shareholders have approved a plan to sell assets and raise capital at its long-delayed annual general meeting.

This came two months after the financial giant unveiled a State-led rescue package that ended speculation over its fate.

Shareholders last week passed resolutions to extend the period in which Huarong can issue the remaining 10 billion yuan (US$1.6 billion) in its capital bond quota and grant the board a mandate to issue up to 20 percent of its outstanding shares.

They also agreed to sell a 72 percent stake in Huarong’s securities unit and raise as much as 70 billion yuan by selling bonds on the nation’s interbank market.

Huarong secured a rescue package in August from some of China’s biggest financial firms, including State-owned conglomerate Citic Group.

After a long delay in releasing its 2020 earnings that had spooked investors, the firm revealed a record loss of US$15.9 billion and a 85 percent plunge in shareholder equity.

If implemented, the strategic investment will replenish Huarong’s capital, consolidate its foundation for sustainable operations and ensure it meets regulatory requirements, Huarong said in August. No details have been announced so far.

Huarong may receive about 50 billion yuan in fresh capital as part of an overhaul plan, people familiar with the matter have said, adding that control of the firm would shift to Citic, though details were still being finalized and could change.

Trading of Huarong’s Hong Kong-listed shares will remain suspended, according to a company statement. (SD-Agencies)