ANNOUNCEMENT 15 Aug 2017

August 15, 2017 - China's state-owned CITIC group announced a bailout of the struggling Hongqiao group - the world's largest aluminium smelter.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Binzhou Municipal government, August 16, 2018. (中国宏桥与中信信托、中信银行 在香港举行战略合作签约仪式)
http://www.binzhou.gov.cn/work/html/?62873.html

Inception date: 15 Aug 2017 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

On the 15th of August 2017, after a joint meeting in Hong Kong, China's CITIC, the largest conglomerate in the country, announced it would be buying 806.6m new shares and USD 320m of convertible bonds in Hongqiao group, a state-owned Chinese aluminium smelter, which is also the world's largest.

The move comes after a series of difficult years for Hongqiao, which has struggled to adapt its business model to the increasingly stringent environmental requirements from the Chinese government, leading to many plants being either idled or shut down.

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