Changes in Hong Kong stocks | AMC concept stocks fell back in early trading, China Cinda (01359) fell more than 11%, and CITIC Financial Assets (02799) fell nearly 9%

The Zhitong Finance App learned that AMC concept stocks declined in early trading. As of press release, China Cinda (01359) fell 10.14% to HK$1.33; CITIC Financial Assets (02799) fell 7.46% to HK$0.62.

According to the news, Minister of Finance Lan Foan said at the press conference of the State Information Office on October 12 that it will launch a package of targeted incremental policy measures in the near future; the Ministry of Finance plans to increase large-scale debt limits at one time to replace hidden local government debt stocks and increase support for local debt risk resolution; countercyclical adjustment and other policy tools are being studied. For example, the central government also has more room to borrow and raise deficits.

Guohai Securities pointed out that the AMC circuit has strong market value management logic, and the positioning of central enterprise financial holdings within the central enterprise group is expected to be more clear and centralized. After Huarong, one of the four major AMCs, was acquired by CITIC Group, it has completed an initial transformation of its business model, providing a model for the subsequent transformation and development of the other three AMC Cinda, Oriental and Great Wall (transferred to CITIC). Further development can be expected. The business model is also expected to shift from receiving and disposing of bad asset packages from banks to mergers, acquisitions and restructuring and equity investment in the primary market, boosting performance and valuation repair.