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

That said, we believe China Cinda possesses stronger loss-absorbing buffers than peers, thanks to the company's modest growth appetite and gradual transition to an asset-light model. The stable outlook on China Cinda over the next 24 months reflects our view that the company will retain its very important role for, and very strong link with, the Chinese government. The outlook also reflects our view that the group's nonbank financial institution (NBFI) segment will keep its leverage below 6.5x over the next 24 months. We believe the segment will maintain asset quality in line with its peers' and have manageable impairment charges on assets. In addition, we expect the credit profile of Nanyang Commercial Bank (NCB), a subsidiary of China Cinda,

...Property troubles and uneven economic growth still weigh on the asset quality and earnings of China Cinda Asset Management Co. Ltd. The company's profitability could come under pressure from impairment losses and weaker revenue as the property market struggles to recover. This is despite its efforts to downsize its risky distressed assets over the last few years. That said, we believe China Cinda possesses stronger loss-absorbing buffers than peers, thanks to the company's modest growth appetite and gradual transition to an asset-light model. The company will remain a key player in the niche DAM business. China Cinda's long operating history, established expertise, and nationwide footprint in the DAM business underpin its strong market position. They company was the largest among China's five licensed national asset management companies (AMCs) by total assets as of end-2023. The very high likelihood of extraordinary government support will remain intact. We expect China Cinda to maintain...

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