...January 29, 2023 HONG KONG (S&P Global Ratings) Jan. 30, 2023--China Cinda Asset Management Co. Ltd. can absorb earnings pressure and policy initiatives over the next two years. This is despite the company's recent profit warning, which reflects continued operating difficulties for distressed asset management companies (DAMCs) in China. Asset quality for China Cinda (###+/Stable/A-2) will likely be subject to pressure this year and next, particularly for its restructured distressed assets. This is because a lackluster economic recovery and property sector slump in China have weakened the creditworthiness of loan-like assets. Credit costs could also remain elevated should the company maintain its provision coverage. In addition, China Cinda could foray into incremental property ventures. The company is also likely to shoulder policy functions to help revitalize the real estate sector. The People's Bank of China recently announced plans to establish relending facilities for Chinese national...
