Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘AA-’ global scale Long-term Issuer Credit Rating of China Great Wall Asset Management Co., Ltd. (“China Great Wall” or “the company”); Issuer Rating Outlook Positive
The Issuer Rating of China Great Wall reflects a high possibility that China Great Wall would receive strong policy support if needed, in light of its strategic importance in maintaining economic and financial system stability in China as a national financial assets management company (“AMC”) and its state ownership. The state-owned shareholders have close management supervision over the company and could provide operational and financial support if needed. China Great Wall continues to focus on its core distressed assets management business under the return-to-core-business strategy. Its profitability has stabilized since 2023, although its equity base has remained weak.
The Positive Outlook of China Great Wall reflects our expectation that the company’s strategic importance and government support would be strengthened. It would play an increasingly important role in resolving financial risks and safeguarding the stability of economic and financial system as the Chinese government is focusing on mitigating debt risks and sustaining economic growth.
On 18 April 2025, China Great Wall’s controlling shareholder was changed to Central Huijin Investment Ltd. (“Central Huijin”), a wholly state-owned investment company mandated to exercise the rights and obligations as an investor in major state-owned financial enterprises on behalf of the Chinese government. Following the completion of the change, its shareholders’ meeting resolved to allot shares to the existing shareholders on 22 April 2025, increasing the company’s capital by RMB 36.8 billion. We believe the capital replenishment will enhance China Great Wall’s capital adequacy and strengthen its capacity to perform its strategic functions.