Huarong eyes 20-30% profit rise

China Huarong Asset Management Co, one of the nation's biggest asset reconstruction firms, said it expected annual profit growth of between 20 percent and 30 percent in the next few years.

Its Chairman Lai Xiaomin said the projected growth target followed much faster expansion over the past few years.

That range of growth, from a much higher historical base, remains "very good", Lai said in Beijing on Monday on the sidelines of the annual meeting of the National People's Congress.

Profit growth for all of 2016 was faster than in the first half of last year, he said, without providing details as the company has yet to report annual results.

Huarong is boosting its capital base to tap new business in China's distressed debt market, which Lai said will continue to grow in the next few years amid slower economic growth.

Its planned initial public offering in Shanghai can be completed by the end of 2018 and will likely raise more than the company's IPO in Hong Kong in 2015, he said.

Huarong is also planning to sell as much as 60 billion yuan ($8.7 billion) of bonds in China and $10 billion in overseas debt this year, he said.

BLOOMBERG