(Yicai Global) Jan. 22 -- Another unit of Chinese aviation behemoth HNA Group has suspended trading on the Shenzhen A-share market due to liquidity problems, bringing the number of its subsidiaries that have halted trading since November to five.
Beijing-based HNA-Caissa Travel Group Co.'s [SHE:000796] stock will remain suspended ahead of a development, which may impact share price, online media outlet The Paper cited HNA Chairman Chen Feng as saying.
Ccoop Group Co. [SHE:000564] was the first HNA Group firm to bring a stop to trading on Nov. 28 last year, due to major issue planning and four subsidiaries have now followed suit. This Group boasts ten A-share listed companies and seven Hong Kong-listed companies.
HNA Group has acquired assets and property projects from Hilton Worldwide Holdings Inc., NH Hotel Group SA, and others in recent years, as part of global expansion plans. However, it has struggled with debt issues and plans to sell some of its overseas assets.
The group is finding it increasingly difficult to gain new financing and improve liquidity due to a structural slowdown in China's economic growth, Chen admits. HNA will look to integrate its businesses, creating a synergy between domestic and foreign resources, as well as improve management.