By Yvonne Lee

HONG KONG--China Huarong Asset Management Co. on Monday published a preliminary prospectus on the Hong Kong Stock Exchange website for an initial public offering that could raise between $2 billion and $3 billion.

The potential listing would make Huarong--China's largest bad-loan buyer by assets--the second such company to go public after China Cinda Asset Management Co. (1359.HK) raised $2.8 billion in a Hong Kong offering in December 2013.

A listing application is the first step toward getting approval from the Hong Kong exchange for an IPO.