Changes in Hong Kong stocks | China Cinda (01359) rebounded by more than 4%, and local AMC has begun to actively participate in chemical bonds, AMC is expected to face a double hit from Davis

The Zhitong Finance App learned that China Cinda (01359) rebounded by more than 4%. As of press release, it had risen 4.88% to HK$1.29, with a turnover of HK$522 million.

Guojin Securities pointed out that at present, financial debt has become an important means of resolving local debt. AMC is the most direct beneficiary. On the one hand, the revenue side benefits from the increase in the amount of non-performing assets disposed of, and on the other hand, the asset quality of non-performing assets on the asset side will also improve during the economic recovery process. Currently, local AMC has begun to actively participate in debt conversion.

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. By observing CITIC Financial's asset restoration process, we expect the sector to face a double attack from Davis, and we recommend focusing on China's Cinda.