HNA Group. Photo: AFP
HNA Group. Photo: AFP

HNA Hospitality Group, the hotel unit of Chinese conglomerate HNA Group, has ceased issuing 2 billion yuan (US$310 million) in corporate bonds, according to an announcement from the Shanghai Stock Exchange, The Paper reported.

The company told The Paper that due to changes in the group’s financing needs, it decided to withdraw the application filed earlier to the stock exchange about the non-public issuance of corporate bonds.

The current actual controller of the company is HNA Group. The company’s major shareholder, Beijing Haihongyuan Investment Management Co. Ltd., is 100% owned by HNA Tourism Group Co. Ltd., a subsidiary of HNA Group.

It is noticeable that the company was once one of the target assets to be restructured by Hainan Airlines, a carrier affiliated with HNA Group. Hainan Airlines said in March that it will buy all or part of the equities of the HNA Hospitality Group.

However, the acquisition was unsuccessful because HNA Hospitality Group’s due diligence investigation had not yet been completed and the related parties failed to reach a full agreement on the deal.