...July 30, 2020 HONG KONG (S&P Global Ratings) July 30, 2020--S&P Global Ratings said today that China Cinda Asset Management Co. Ltd. (A-/Stable/A-2) has sufficient leverage buffer to withstand lower earnings. China Cinda recently warned that its consolidated net profit in the first half of 2020 will be approximately 25%-30% lower than that in the same period of 2019. The significant earnings decline in first-half 2020 was mainly due to two factors. First, China Cinda had lower gains on financial assets measured at fair value. The company attributed the slide in gains to a weaker performance of capital market on a year-on-year basis. Second, China Cinda's credit provisions on its loan-like restructured distressed assets increased. We believe the earnings pressure is likely to spill into the second half of this year. China Cinda is likely to continue to see heightened asset quality pressure on its restructured distressed assets, because a broad-based economic growth shock in China has weakened...
