China Cinda Asset Management's stock price tumbled 5.71% in intraday trading on Tuesday, underperforming the broader market. This plummet came after news emerged that China's Finance Ministry plans to transfer its 58% stake in the company to a unit of the sovereign wealth fund China Investment Corporation.

According to reports, the divestiture to Central Huijin Investment, part of a regulatory rejig, is in its final stages but could still face changes or delays. Investors appear to be concerned about the implications of this ownership change for China Cinda, one of China's largest bad debt managers.

While the move is seen as part of China's efforts to delineate its roles as regulator and shareholder, there are uncertainties around how the sovereign wealth fund unit's ownership could impact China Cinda's strategy and operations. The restructuring is also expected to play a crucial role in addressing China's bad debt market, which has been hit hard by woes in the property sector.