Bulletin: Huatai Securities' GDR Listing Could Deliver Capital Boost

HONG KONG (S&P Global Ratings) June 13, 2019--S&P Global Ratings today said that Huatai Securities Co. Ltd.'s (BBB/Stable/A-2) issuance of new shares and global depository receipts (GDR) listing, if completed successfully, could build the company's capitalization for future business growth. Any potential rating effect, however, will likely be muted, in our view. Huatai Securities announced that the U.K. Financial Conduct Authority approved its GDR prospectus on June 11, 2019. The issuance could bring up to US$2 billion of fresh capital to the company, based on existing plans. This is equivalent to 13% of the company's common equity at the end of 2018. The company's capitalization, as measured by S&P Global Ratings' risk-adjusted capital ratio, could improve noticeably in the near

...June 12, 2019 HONG KONG (S&P Global Ratings) June 13, 2019--S&P Global Ratings today said that Huatai Securities Co. Ltd.'s (###/Stable/A-2) issuance of new shares and global depository receipts (GDR) listing, if completed successfully, could build the company's capitalization for future business growth. Any potential rating effect, however, will likely be muted, in our view. Huatai Securities announced that the U.K. Financial Conduct Authority approved its GDR prospectus on June 11, 2019. The issuance could bring up to US$2 billion of fresh capital to the company, based on existing plans. This is equivalent to 13% of the company's common equity at the end of 2018. The company's capitalization, as measured by S&P Global Ratings' risk-adjusted capital ratio, could improve noticeably in the near future to around 14% from 10.9% as of June 30, 2018. In our view, the company is likely to deploy the capital to support its onshore business development and expand its overseas footprint. Huatai...

Bulletin