Very important policy role and very strong link with the government. Unique market position shaped by regulations. Offering diversified financial services and products. High inherent risks in purchase of distressed assets. Increasing risk appetite for high risk assets. Weaker banking subsidiary compared to the rest of the group. The negative outlook on China Huarong Asset Management Co. Ltd. (China Huarong) reflects the deteriorated creditworthiness of its bank subsidiary, Huarong Xiangjiang Bank, and the high growth in riskier investments. In our view, these factors will pressure the creditworthiness of China Huarong over the next 12-18 months. We expect China Huarong's nonbank segment to maintain a moderate leverage ratio of 4.51x-6.5x while the company retains its very important role and very strong
