Bulletin: Regulatory Action Has Limited Financial Implications For Haitong Securities

HONG KONG (S&P Global Ratings) April 1, 2021--S&P Global Ratings said today that a recent regulatory action is unlikely to significantly affect the performance of China-based Haitong Securities Co. Ltd. (HTS; BBB/Stable/A-2) and its Hong Kong-based subsidiary Haitong International Securities Group Ltd. (HTI; BBB/Stable/A-2 ). In our view, the direct impact of recent disciplinary actions by China Securities Regulatory Commission (CSRC) on HTS' financial performance is not significant. Also, at this stage, the indirect impact, including effects on the China-based securities firm's reputational risks and on other business activities, is limited. The businesses affected by the suspension are small contributors to HTS' earnings. On March 24, 2021, CSRC said that it had banned HTS from conducting fixed income investment advisory

...April 1, 2021 HONG KONG (S&P Global Ratings) April 1, 2021--S&P Global Ratings said today that a recent regulatory action is unlikely to significantly affect the performance of China-based Haitong Securities Co. Ltd. (HTS; ###/Stable/A-2) and its Hong Kong-based subsidiary Haitong International Securities Group Ltd. (HTI; ###/Stable/A-2 ). In our view, the direct impact of recent disciplinary actions by China Securities Regulatory Commission (CSRC) on HTS' financial performance is not significant. Also, at this stage, the indirect impact, including effects on the China-based securities firm's reputational risks and on other business activities, is limited. The businesses affected by the suspension are small contributors to HTS' earnings. On March 24, 2021, CSRC said that it had banned HTS from conducting fixed income investment advisory business for institutional investors for a year. It also suspended Haitong Asset Management (HTAM), HTS' subsidiary, from carrying out private fund investment...

Bulletin