Zhuhai Huafa Group’s announcement that it would try to sell some assets to local state-owned enterprises was some sorely needed good news for the market at the end of a turbulent week. In our view, there are three main kinds of financial resource available in the Zhuhai SOE ecosystem.
Local LGFVs, SOEs
With about CNY 744bn ($111.8bn) in total assets, Zhuhai Huafa is Zhuhai’s biggest SOE, and it’s larger than the city’s local government financing vehicles too — as LGFVs tend to be smaller than SOEs. Still, we identified potential available resources from both:
We estimated Gree Group’s liquidity resources using its parent level (non-consolidated) financials as of Q1 26:
- Cash balances at CNY 5.8bn (restricted portion unidentifiable, therefore ignored)
- Wealth management products, or certificate of deposits reported as “other current assets” at CNY 4.6bn
- Equity stake in Gree Electric (SZSE: 000651) at CNY 7.5bn (as of market close 30 October 2026)
- Undrawn bank facilities of CNY 44.9bn
- the above items are more than enough to cover short-term debt of CNY 19.6bn at the parent level, representing a net liquidity resource of CNY 43bn
- Gree Group bought stakes in Zhuhai Duty Free from Huafa for an initial payment of
