...HONG KONG (S&P Global Ratings) Aug. 6, 2018--S&P Global Ratings said today that its ratings on Huatai Securities Co. Ltd. (###/Stable/A-2) are not affected by the China-based firm's equity fundraising on Aug. 3, 2018. The capital injection is supportive of the ratings and the stable outlook on the company but is not enough to change our assessment on its overall credit profile. We expect the firm to deploy the capital gradually in ordinary business operations such as margin financing and offshore business expansion. Huatai Securities placed Chinese renminbi (RMB) 14.2 billion of "A shares" listed on the Shanghai stock exchange to six strategic investors, including a network technology arm of Alibaba and Suning.com Co. Ltd. The capital injection is equivalent to 27% of the company's common equity at the end of 2017 and could improve S&P Global Ratings' risk-adjusted capital (RAC) ratio by around 230 basis on a static basis. Given Huatai Securities' 11.7% RAC at the end of 2017, we expect...
