Assessments

Lai Xiaomin, then-chairman of Huarong Asset Management Co., speaks during a conference in China in 2016. Lai was executed in January 2021 following his conviction on bribery charges.

The contrasting treatment of two fragile Chinese companies hints at Beijing’s goal of eliminating risk in real estate investment.

Why China Bailed Out Huarong and Not Evergrande

Why China Bailed Out Huarong and Not Evergrande | Stratfor

Highlights

China

Economics

China in Transition

China’s move to bail out Huarong Asset Management Company while leaving the privately-owned property manager Evergrande Group to work out its financial issues may appear to send mixed messages on how the government addresses financial risks. But it also hints at Beijing’s goal of tackling real estate investment as a priority in risk management.

ASSESSMENTS

Why China Bailed Out Huarong and Not Evergrande

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