China Cinda Asset Management Co. Ltd. And China Cinda (HK) Holdings Co. Ltd.

The stable outlook on China Cinda reflects our view that the company will retain its very important role to, and very strong link with, the Chinese government. The outlook also reflects our view that the group's NBFI segment will keep its leverage below 6.5x over the next 24 months. We believe the NBFI segment will maintain its asset quality in line with its peers' and have manageable impairment charges on assets. We also expect the credit profile of China Cinda's subsidiary Nanyang Commercial Bank Ltd. (NCB) to remain stable. The stable outlook on Cinda HK reflects our view that the company will remain a core subsidiary of China Cinda. As such, the ratings and outlook on Cinda HK will move

...China Cinda Asset Management Co. Ltd. (China Cinda)'s non-bank financial institution (NBFI) segment will face some challenges from the rising liquidity strains in China's property sector. Problematic assets in China Cinda's restructured distressed asset (RDA) book are likely to increase over the next two years, given the company's high exposure to the property market. This is, despite the company lowering its property balance by 29.5% in 2021, accounting for 42% of the RDA book. Some risks are mitigated by China Cinda's prudent collateral coverage, supported by a tightening management of property exposure with a focus on top-tier cities. The company will likely maintain its solid market position in the niche DAM market. Despite increasing competition in the DAM market due to lower regulatory barriers to entry, China Cinda will remain a dominant player, in our view. This is supported by its long-term expertise and track record in distressed asset disposal and restructuring, as well as its...

Full Report