BEIJING (Reuters). China Huarong Asset Management received approval to raise 70 million yuan ($11billion) in financial bonds at the interbank marketplace. The move is part of China Huarong Asset Management’s efforts to strengthen its credit profile, and refocus its focus on its principal bad loan business.

China Banking and Insurance Regulatory Commission (CBIRC), Tuesday in a statement posted on their website, said that bonds can be used to buy, sell, and dispose of non-performing assets and will also be used by other principal businesses like bond-to equity swaps.

China’s financial ministry created the company in 1999 as one of four collectors for bad loans. It missed the March 31 deadline for filing 2020 earnings. This triggered a sell-off in U.S. Dollar-denominated bonds, which spread to other Chinese issuers.

After the revelation of a state-backed rescue plan in August, bonds surged after it was revealed that a consortium headed by Citic Group Corp agreed to invest in strategic areas.

Reuters reported that the company also plans to divest stakes in a consumer finance and distressed asset exchange units, as well as in the securities unit. This announcement comes amid a push by regulators to dispose of non-core assets.

($1 = 6.3710 )