Very important policy role and very strong link with the government. Unique market position shaped by regulations. Diversified financial services and products. High inherent risks in purchase of distressed assets. Elevated financial leverage in non-bank operations. High risk appetite in investment and overseas business. The negative outlook on China Huarong Asset Management Co. Ltd. reflects significant uncertainty related to the deleveraging efforts of the distressed asset manager over the next 12-24 months, given the heightened financial leverage of the non-bank operations and the accumulation of riskier investments. In particular, the timing and amount of China Huarong's capital-raising plan is uncertain, given the complicated regulatory approval process. We expect China Huarong to retain its very important role to the government as
