CITIC Financial Assets President Li Zimin: With a large stock of non-performing assets, competition among supply entities is differentiated

Ask AI · How can diversified players improve their industry competitiveness through differentiated paths?

21st Century Business Herald Reporter Guo Congcong

On March 31, China CITIC Financial Asset Management Co., Ltd. (hereinafter “CITIC Financial Asset”) held its 2025 annual performance briefing in Beijing.

Facing the current market landscape in which multiple players—“the top five AMC firms, local AMCs, bank-affiliated AICs, and private and foreign institutions”—are competing side by side in the non-performing asset management industry, CITIC Financial Asset’s President Li Zimin said that the non-performing asset industry has a large stock market, urgent market demand, and diverse needs. On the basis of a broad market space, diversified players have taken differentiated development paths, and comprehensive financial service capabilities are the key to building competitive barriers.

Li Zimin said that the current competitive landscape in the non-performing asset industry is built on an ultra-large stock market and a foundation of diversified demand. “At present, whether it is local governments, financial institutions, enterprises, or individual borrowers, there is an urgent and diverse need for ‘adjusting structures, reducing leverage, managing and monetizing existing stocks, and supporting distressed parties to facilitate transformation.’ In particular, the ultra-large scale of the stock market provides ample space to expand the industry’s boundaries.”

Second, the various supply entities in the industry are not stuck in homogeneous, inefficient, disorderly competition, but have instead taken differentiated development paths. Li Zimin said, “‘Crossing the sea each shows their own skill,’ (the supply entities) can precisely provide a richer range of supply for a broad customer base. These diversified supplies not only improve customers’ satisfaction, but also enable everyone to learn from one another, iterate and upgrade. By continuously creating new solutions, we can jointly push the industry to a new height.”

Third, the core competitiveness of financial asset management companies stems from their unique combination of integrated service methods and tools. Li Zimin emphasized that AMC can provide flexible, composite, and tailored customized services, with diversified approaches such as “investment + investment banking,” “equity + debt,” and “asset integration + debt restructuring,” supported by a range of tools including mezzanine investments, phased shareholding, and beneficial debt. “These unique qualities and capabilities can effectively address complex and difficult issues for clients and projects. Because of this, such customers have high stickiness. When deeply focusing on a particular industry, a particular region, or a particular group client, the market leader will build a very high entry barrier, thereby avoiding direct competition.”

Earlier, CITIC Financial Asset disclosed its 2025 core business operating data: In 2025, the company’s core business saw an additional deployment of RMB 178.6 billion, up 8% year over year, remaining firmly in the first place in the industry; the scale of additional acquisitions of non-performing asset debt reached RMB 242.1 billion for the full year, up 35% year over year; and additional deployments in distressed support and asset revitalization business reached RMB 92.3 billion, up 34% year over year. Resources have continued to concentrate toward the core business. The unique advantages of counter-cyclical adjustment and financial rescue have further come into play.