China CITIC Financial Asset Management Faces Capital Pressure Amid Weak Property Sector, S&P Says

MT Newswires Live
04/03

S&P Global Ratings expects capital pressure to hound China Citic Financial Asset Management (HKG:2799) over the next one to two years, according to a recent release.

Persistent domestic property weakness mitigates government-anchored profitable gains, S&P said.

Property oversupply will reduce primary housing prices by 2% to 4% this year, the rating agency said.

Property sector exposures in the company's core businesses accounted for about 10% of total assets as of end-2025 even with cleanup and provisioning measures, S&P said.

The company should retain buffers against property-tied asset risks, with profits from equity holdings in state-owned enterprises to shield against the effects of heightened expected provisioning, the rating agency said.

S&P expects the company's financial leverage ratio to continue exceeding 12x over the next one to two years.

The company's renewed growth efforts following its business restructuring will require additional capital, S&P said.

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