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 · 2026-04-02T07:42:35+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

2026-04-02 07:42:35

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

Judging by book net profit, CITIC Financial Asset and China Cinda both reported double-digit growth. However, behind these seemingly impressive figures are the many pressures that AMCs have been bearing amid a downturn in the economy and a slump in the real estate sector. A closer look at their reports shows that the growth in AMC profits largely comes from book gains generated by equity investments, including bank shares. These are neither gains that can be turned into real cash, nor improvements in the core business.

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