Hong Kong Stock Market News | CHINA HUARONG surges over 8%, officially renamed as CITIC Financial Assets, expected to turn last year's net loss into a profit of up to 2 billion yuan.
China Huarong's stock price rose by more than 8%, reaching HKD 0.375, with a turnover of HKD 13.9542 million. The company has officially changed its name to China CITIC Financial Asset Management Co., Ltd. This renaming highlights the characteristics of a financial asset management company license and is expected to play a greater role in maintaining the stability of the financial system. In addition, the company expects to reverse its net loss from last year and turn it into a profit, with an estimated maximum of CNY 2 billion.
Zhitong App learned that CHINA HUARONG (02799) has risen by more than 8%. As of the time of writing, it has increased by 7.14% to HKD 0.375, with a turnover of HKD 13.9542 million.
In terms of news, CHINA HUARONG announced the official change of its company name. According to the announcement, on January 25, 2024, the company completed the registration/change procedures for the company name and articles of association at the registration authority, and obtained a business license issued by the Beijing Municipal Administration for Market Regulation. The name has been changed from "CHINA HUARONG" to "China CITIC Financial Asset Management Co., Ltd.", with no changes to other contents of the business license.
It is reported that in November last year, the company announced that, based on its overall strategic planning and positioning, in order to further enhance its brand influence, the company plans to change its name to CITIC Financial Asset Management. Industry insiders pointed out that the addition of the word "financial" highlights the characteristics of a financial asset management company license. The change of ownership sends a clear signal for asset management companies to deepen reforms and prevent and resolve financial risks, and is expected to promote its greater role in maintaining financial system stability.
In addition, CHINA HUARONG recently announced that, based on preliminary calculations, the group's net profit attributable to shareholders for the year 2023 is expected to be between RMB 1 billion and RMB 2 billion, and the net loss attributable to shareholders for the year 2022 was RMB 27.581 billion, achieving a turnaround from loss to profit on a year-on-year basis. This is mainly due to an increase in fair value changes in equity assets compared to the previous year, and the recognition of impairment losses and unrealized fair value changes of approximately RMB 40 billion, which offset the group's current period profit.