Huarong to sell 20% stake to investor group

Goldman Sachs Group Inc and private equity firm Warburg Pincus LLC are among the investors nearing a deal to buy as much as a 20 percent stake in China Huarong Asset Management Ltd for about $2 billion, seeking a share in the profitable business of bad loan management in China.

Other investors preparing to buy into China's biggest manager of nonperforming loans include Malaysian state investor Khazanah Nasional Bhd, Citic Group, China International Capital Corp, Fosun Group Co and Cofco Corp, people familiar with the matter said.

Citigroup is the adviser for the deal, said the people, who declined to be identified as the matter remained confidential.