China's Finance Ministry will transfer its 58% stake in China Cinda Asset Management (HKG:1359) to a unit of sovereign wealth fund China Investment Corporation, Bloomberg News reported Tuesday, citing people familiar with the matter.

The divestiture to Central Huijin Investment, part of a regulatory rejig, is in its final stages but could still change or face delays, the report said.

China's move is seen as part of the country's commitment to delineate its roles as regulator and shareholder while ensuring discipline at some state-owned companies, the report said.

Central Huijin is Beijing's investment arm holding stakes in state banks, insurers, and brokerage, Bloomberg reported.

The restructuring could help play a "crucial role" in addressing China's bad debt market due to woes in the property sector, the report said, citing Ryan Han, chief of fixed income at China Pinnacle Equity Management.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)