Chinese conglomerate HNA Group is asking the Chinese province of Hainan for assistance as it faces a slowdown in its businesses as a result of the coronavirus outbreak. According to Reuters, the provincial government of Hainan has been asked to lead a work group with the goal of “resolving its increasing liquidity risks”. HNA Group is the parent company of both Hainan Airlines and Hong Kong Airlines.
According to the South China Morning Post, HNA Group’s liquidity will be managed by a committee made up of representatives from at least two Hainan government units. According to the company’s Saturday statement, these units will be the country’s civil aviation administrator and China Development Bank.
HNA Group not only owns Hainan Airlines and Hong Kong Airlines, but also has assets around the world associated with hotels, banking and real estate. Recently the group has come under heavy pressure to repay debts that have reached as high as US$108 billion.