HK Stock Market Move | CITIC FAMC (02799) rose by more than 4%, expecting a maximum increase in net profit by 4.6 times for the whole year, selling Huarong Financial Leasing to help focus on the development of its main business.

CITIC FAMC (02799) rose over 4% again, with a cumulative increase of nearly 25% over the past six trading days. As of the time of writing, it rose by 4.55% to HK$0.69 with a trading volume of HK$13.5042 million. On the news front, on January 16, CITIC FAMC released a profit forecast, stating that based on preliminary accounting data, the net profit attributable to the company's shareholders for the year 2024 is estimated to be between 9 billion and 10 billion yuan, an increase of 410% to 466% year-on-year. It is reported that the net profit attributable to the company's shareholders in the year 2023 was 1.766 billion yuan. It is worth noting that CITIC FAMC has recently completed the transfer of 60% of its shares in Huarong Financial Leasing Co., Ltd. to Citic Group. The company previously stated that this sale is beneficial for the company to focus on its core business and concentrate more resources and energy on the development of non-performing asset business. After this sale is completed, it will supplement the core Tier 1 capital of the parent company in one go, achieving a capital supplement effect of over 6.3 billion yuan.