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

Very high likelihood of extraordinary government support. Unique market position shaped by regulations. Core focus on the distressed-asset management business with good information disclosure. Concentrated exposure to China's property development sector. High inherent risks in distressed-asset management. Business transition to rein in financial investments induce high operational risk. The stable outlook on China Cinda Asset Management Co. Ltd. (China Cinda) reflects our view that the group will moderate expansion in its nonbank business such that the segment's leverage stays at 7x-8x over the next 12-24 months. We also expect the company to maintain asset quality in line with its peers' and have manageable impairment charges on assets. The stable outlook on China Cinda (HK) Holdings Co. Ltd. (Cinda HK) reflects

...Strengths: Weaknesses: + Very high likelihood of extraordinary government support. + Unique market position shaped by regulations. + Core focus on the distressed-asset management business with good information disclosure. + Concentrated exposure to China's property development sector. + High inherent risks in distressed-asset management. + Business transition to rein in financial investments induce high operational risk....

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