China Huarong Asset Management Co will sell 70% of its consumer finance Division to Bank of Ningbo to regain its core operating activities.
The company is selling its non-core subsidiary to comply with the regulatory requirement and to restructure its subsidiary.
Huarong Consumer Finance will no longer be a subsidiary of the group after completion of the deal, a statement filed with Hong Kong Stock Exchange said.
Why Sell Consumer Finance?
An equity transfer deal was reached on 27 December 2021. Approval from regulatory authorities still awaits. Bank of Ningbo will buy Huarong Consumer Finance division for $172.64 million.
The goal is to raise capital and meet the 12.5% government's target to maintain adequate capital ratio. The company seeks to restore its core operation...