From Investing.com:

Fitch downgrades ratings for four Chinese asset management companies
Fitch Ratings has downgraded the ratings of four Chinese national asset management companies, citing weaker government support and headwinds from a property market slump. The IDRs of China Cinda Asset Management and China Orient Asset Management Co were downgraded to ‘A-’, while China Huarong Asset Management Co Ltd and China Great Wall Asset Management had their ratings cut to ‘BBB’.

Uncertain government support leads to downgrade for Chinese asset managers
The downgrade was driven by increased uncertainty over potential government support for China’s major national asset managers. Fitch analysts noted that government support for the national asset managers has weakened due to financial underperformance and capital constraints, reducing their ability to effectively perform their policy role.

Property downturn and economic recovery pose challenges for Chinese asset managers
The property market woes and economic recovery have presented more headwinds to the asset managers. The ratings agency still expects a recovery in their financial positions, with the pace largely contingent on the property sector. The move comes as Moody’s put China’s sovereign rating on downgrade watch due to concerns over the property market and weak economic recovery.

Chinese stocks slump after downgrades
The broader Chinese economy remained weak as a post-COVID rebound largely failed to materialize over the past year, weighing heavily on Chinese equity markets. The CSI 300 fell 1.4%, trading just above a five-year low. The Hang Seng Index fell 0.9%, while losses in mainland stocks pulled Hong Kong’s HSI down 0.5%.

Government support to little impact on Chinese markets
Chinese national asset managers have been deployed by the government to snap up non-performing assets in open markets over the past three years in a bid to shore up sentiment towards the country. However, buying activities have yielded little long-term support for local markets.

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Read more: Fitch downgrades 4 Chinese national asset managers, warns of more cuts By Investing.com