China Citic Financial Asset Management Co. Ltd. And China Huarong International Holdings Ltd.

We also believe China's Ministry of Finance (MOF) will remain the ultimate controlling shareholder of Citic Financial AMC. This is despite the emergence of CITIC Group Corp. Ltd. as the company's largest shareholder after the ministry transferred its 3% stake to CITIC Group in March 2022. The stable rating outlook on Citic Financial AMC 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. Citic Financial AMC has a very high likelihood of receiving extraordinary government support if needed. The outlook also reflects our view that Citic Financial AMC will maintain our assessment of its stand-alone credit profile (SACP) over the period. We could

...Extraordinary level of government support is a strength. China Citic Financial Asset Management Co. Ltd. (Citic Financial AMC) will likely maintain its very important role as an integral part of China's financial stability framework. This is given the company's core role in helping the government resolve risks in the financial system. We also believe China's Ministry of Finance (MOF) will remain the ultimate controlling shareholder of Citic Financial AMC. This is despite the emergence of CITIC Group Corp. Ltd. as the company's largest shareholder after the ministry transferred its 3% stake to CITIC Group in March 2022. High impairment costs will weigh on financial leverage. We expect Citic Financial AMC's financial leverage (ratio of interest-bearing debt to adjusted total equity) to remain weak over the next two years. We estimate leverage will exceed our 12x threshold for a weak capital and earnings assessment, given weak earnings prospects due to high impairment costs. Our capital base...

Full Report