Huarong set to raise funds in Hong Kong

State-owned bad debt management firm China Huarong Asset Management Co Ltd has won approval from Hong Kong's stock exchange for its initial public offering, expected to raise as much as $3 billion, a person with direct knowledge of the plans said.

Due to volatility in global stock markets, the company will wait a couple of weeks before marketing the IPO, instead of beginning right away, the source said, setting the stage for an offering in September or early October.

The source, who was not authorized to talk to media on the matter, declined to be identified. A Beijing-based spokeswoman for Huarong declined to comment.