The prices of bonds issued by China’s largest manager of distressed debt tumbled to record lows as global investor fears mounted over its financial health following the execution of its former chair for bribery.

Concerns surrounding state-owned Huarong Asset Management, a conglomerate with about Rmb1.7tn ($260bn) of assets and $22bn in outstanding offshore debt, have been growing since it said it would delay the release of its financial results at the start of April.

Lai Xiaomin, Huarong’s former chair, was executed in January after being found guilty of taking Rmb1.8bn in bribes over a 10-year period. The sell-off in the company’s bonds reflected uncertainty among investors, which include global fund managers, over assets that were originated during his leadership.