Hainan Airlines warned for busting guarantees limit
The China Securities Regulatory Commission (CSRC) has issued Hainan Airlines a warning about the level of guarantees it provided to subsidiaries in 2018. In a stock exchange disclosure, the company said it received a letter from the CSRC Hainan Branch July 25, pinpointing CNY5.67b (US$823m) in guarantees to HNA Group, and CNY900m to HNA Industry. The amounts were disclosed in Hainan’s 2018 annual report, and were recently repaid, but exceeded the Commission's limit of 50% of the company's net assets. It was also criticised for not making timely disclosures about the guarantees to the two companies. By issuing a warning letter, the Commission requested Hainan strictly abide by the securities laws and prevent such incidents from happening again. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-07-30/unaligned/hainan-airlines-warned-for-busting-guarantees-limit
https://portal.staralliance.com/cms/logo.png
Hainan Airlines warned for busting guarantees limit
The China Securities Regulatory Commission (CSRC) has issued Hainan Airlines a warning about the level of guarantees it provided to subsidiaries in 2018. In a stock exchange disclosure, the company said it received a letter from the CSRC Hainan Branch July 25, pinpointing CNY5.67b (US$823m) in guarantees to HNA Group, and CNY900m to HNA Industry. The amounts were disclosed in Hainan’s 2018 annual report, and were recently repaid, but exceeded the Commission's limit of 50% of the company's net assets. It was also criticised for not making timely disclosures about the guarantees to the two companies. By issuing a warning letter, the Commission requested Hainan strictly abide by the securities laws and prevent such incidents from happening again. <br/>
