...July 25, 2024 HONG KONG (S&P Global Ratings) July 25, 2024-- China Cinda Asset Management Co. Ltd. is not immune to the challenges of China's uneven economic growth. The company's recent profit warning highlights the tough operating environment for distressed asset managers in China, including asset-quality pressure. We continue to view China Cinda as having the strongest stand-alone credit profile among China's big four distressed asset managers. The rating on the company (###+/Stable/A-2) is therefore unaffected by the profit warning. China Cinda's persistent efforts to dispose of its legacy exposures won't ensure a quick turnaround. The company's earnings and asset quality will likely be strained for an extended period until the Chinese property market shows signs of recovery and homebuyers' confidence improves. In our view, the underperformance will be tempered by the relatively stable operations of the group's banking arm, Nanyang Commercial Bank. We expect China Cinda's capital headroom...
