Behind the profit growth of the two major publicly listed AMCs, underlying concerns remain. Equity investment gains mask the pressures on their core businesses.

WealthCoffee · 2026-04-06T08:42:40+00:00

CITIC Financial Assets and China Cinda's two AMC listed companies are expected to see significant performance growth in 2025, but in reality, this reflects the industry's facing economic downturn and sluggish real estate market pressures. Profit growth mainly relies on equity investment income rather than improvements in core business operations.

WealthCoffee

2026-04-06 08:42:40

Abstract generation in progress

【Caixin Global】 Two of the four nationwide asset management companies (AMCs) in China—China Cinda Financial Asset (formerly Huarong Asset, 02799.HK) and China Cinda (01359.HK)—both released their 2025 performance results toward the end of March. From this, one can get a glimpse of the industry’s overall operating conditions last year.

Judging by net profit on the books, both China Cinda Financial Asset and China Cinda posted double-digit growth. However, behind what appears to be impressive figures, the reality is that the AMCs are actually bearing multiple layers of pressure stemming from an economic downturn and a sluggish real estate market. A closer look at their statements shows that the growth in AMC profits largely comes from accounting gains generated by equity investments, including bank shares. These are not “cash” gains that can be readily collected, nor are they improvements in their core business.

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