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 reflects our view that the company is likely to retain its very important role for, and very strong link with, the Chinese government over the next 24 months. Consequently, the likelihood of receiving extraordinary government support if needed should remain very high. We also expect that Citic Financial AMC will sustain its leading market position and ongoing support for funding and liquidity from domestic banks, mitigating

...An 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. Financial leverage will remain high over next two years. We expect Citic Financial AMC's financial leverage (debt to adjusted total equity), excluding its leasing subsidiary, to exceed 12x. Our forecast of its capital base excludes unconsolidated equity investments in financial institutions. In our view, the company will still face earning challenges in the next two years,...

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