--- title: "Western Securities: Initiates \"Buy\" rating on CITIC Financial Assets, optimistic about the effectiveness of long-term equity investment strategy after the overall transfer to CITIC" type: "News" locale: "en" url: "https://longbridge.com/en/news/258811946.md" description: "Western Securities initiates coverage on CITIC Financial Assets with an \"Overweight\" rating. The company focuses on the main business of non-performing assets, has completed the disposal of its financial subsidiaries, and actively engages in long-term equity investments, holding shares in several high-quality listed companies. It is expected that long-term equity investments will provide stable returns for the company, smoothing out economic cycle fluctuations. CITIC Financial Assets is projected to recognize other income and net profit of 41.476 billion and 75.662 billion yuan respectively in 2023/2024, with a rebound in returns anticipated in the future" datetime: "2025-09-25T06:43:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/258811946.md) - [en](https://longbridge.com/en/news/258811946.md) - [zh-HK](https://longbridge.com/zh-HK/news/258811946.md) --- # Western Securities: Initiates "Buy" rating on CITIC Financial Assets, optimistic about the effectiveness of long-term equity investment strategy after the overall transfer to CITIC According to the Zhitong Finance APP, Western Securities released a research report stating that on one hand, CITIC Financial Assets (02799) focuses on the development of its core business in non-performing assets and has completed the disposal of most of its financial subsidiaries, achieving a "lightweight" operation; on the other hand, the company actively engages in long-term equity investments in high-quality listed companies, holding numerous core high-quality assets. The long-term equity investments are expected to provide stable returns for the company in the future, smoothing the impact of economic cycle fluctuations. The firm is optimistic about the effectiveness of the company's long-term equity investment strategy after its overall transfer to CITIC and initiates coverage with an "Overweight" rating. The report states that CITIC Financial Assets was formerly known as China Huarong, established in 1999, and is one of the four major AMCs in China; in March 2022, the company's party committee was transferred to the management of CITIC Group Co., Ltd.; in 2024, the company was renamed CITIC Financial Assets. The management of non-performing assets is the company's main business, usually referring to the acquisition, management, and disposal of non-performing debts held by enterprises through specialized means, classified by disposal methods into acquisition and disposal, acquisition and restructuring, rescue, and debt-to-equity swap businesses, etc. In 2024, the revenue share of the company's non-performing asset management segment was 84.46%. Currently, the company is fully provisioning for impairment losses on existing debts while being prudent in newly acquired debts, continuously improving debt quality. As the economy gradually stabilizes in the future, a rebound in yield is expected. The firm pointed out that CITIC Financial Assets has increased its long-term equity investment efforts since 2023, investing in high-quality listed companies to smooth the impact of economic cycle fluctuations. Currently, CITIC Financial Assets holds shares in high-quality listed companies such as Bank of China, CITIC, China Everbright Bank, and Daqin Railway. Long-term equity investments have contributed significant revenue to the company at the initial recognition of equity book value, and the dividends and performance of high-quality joint ventures will also contribute stable profit margins to CITIC Financial Assets. Through long-term equity investments, CITIC Financial Assets recognized other income and other net gains of 41.476 billion and 75.662 billion yuan for 2023 and 2024, respectively, contributing dividends and performance of 1.473 billion and 9.495 billion yuan. In 2025, CITIC Financial Assets continues to increase its holdings in high-quality listed companies, having raised its shareholding in Bank of China to 4.71% as of June 30, 2025, and increased its shareholding in China Everbright Bank to 8% as of July 23, 2025 ### Related Stocks - [00267.HK](https://longbridge.com/en/quote/00267.HK.md) - [002673.CN](https://longbridge.com/en/quote/002673.CN.md) ## Related News & Research - [Sany mining summit draws intended orders topping RMB 10 billion](https://longbridge.com/en/news/287219986.md) - [NEWLY FORMED MANHATTAN URANIUM RECEIVES APPROVAL TO DRILL AT NEVADA'S LARGEST PAST PRODUCING MINE](https://longbridge.com/en/news/287233635.md) - [Geely Starray EM-i upgraded for Australia: Bigger battery, more range, more dollars for PHEV SUV](https://longbridge.com/en/news/286953063.md) - [10:22 ETZoomlion baut seine Präsenz in Afrika aus, um den regionalen Infrastrukturausbau zu unterstützen](https://longbridge.com/en/news/287082802.md) - [Positive Report for Sinotruk Hong Kong (3808) from Bank of America Securities](https://longbridge.com/en/news/286848185.md)