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 · 2026-04-07T08:44:15+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

2026-04-07 08:44:15

Abstract generation in progress

【Caixin Global】 Two of the four nationwide asset management companies (AMCs) in China—CITIC Financial Asset (formerly Huarong Asset, 02799.HK) and China Cinda (01359.HK)—both published their 2025 performance results one after another at the end of March, offering a glimpse into the industry’s overall operating situation last year.

Judging by net profit on the books, both CITIC Financial Asset and China Cinda achieved double-digit growth. However, behind these seemingly impressive figures, they in fact conceal the many pressures that AMCs have been under due to an economic downturn and the continued slump in the real estate market. A closer look at their statements shows that the increase in AMC profits largely comes from accounting gains generated by equity investments, including those in bank stocks; these are not gains that translate into cash in hand, nor do they reflect improvements in their core business.

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