China is pushing China Huarong Asset Management Co., Ltd. (SEHK:2799) to sell non-core assets, two people involved in the revamp told Reuters, while considering offering an implicit guarantee of the liabilities of the debt-laden bad-debt manager. Regulators are pressing the state-controlled "bad bank", which has been trying to restructure since 2018, to sell units including a bank, a trust, an investment firm and a consumer finance firm, the sources said. Huarong told Reuters in an emailed statement on June 4, 2021 that regulators have asked it to "return to our roots, focus on our main business and build up core competitiveness." It did not confirm or deny asset sales, saying it would make statements in the future, and did not comment on any debt guarantees. "The company will earnestly fulfill our debt repayment obligations with a responsible attitude," Huarong said, "At the same time, the company's liquidity is in good condition and we have made proper arrangements and adequate preparations for future bond repayment." The Ministry of Finance and the China Banking and Insurance Regulatory Commission (CBIRC), Huarong's regulatory supervisor, did not immediately respond to requests for comment. The authorities have not made any final decisions on a rescue or on Huarong's long-term business development prospects, the sources said. Regulators are waiting for the final audit results of Huarong's delayed annual report, which could be released in August 2021, before making such decisions, the second source said. The backing for Huarong's debt would not be a public announcement but more informal suasion from the authorities, as sometimes seen in China, to prevent creditors from taking drastic action, the first source said.