Bulletin: Shenwan Hongyuan (H.K.)'s Core Group Status Unlikely To Change Due To 2021 Loss

HONG KONG (S&P Global Ratings) April 22, 2022--We will continue to assess Shenwan Hongyuan (H.K.) Ltd. (SWHYHK) as a core subsidiary of its parent Shenwan Hongyuan Securities Co. Ltd. (SWHY) despite its net loss in 2021. This means we believe SWHYHK is likely to continue to receive support from the group under any foreseeable circumstances. While SWHYHK's HK$95.8 million loss is not significant relative to the group's net profit of Chinese renminbi (RMB) 9.5 billion (about HK$11.6 billion), the result was weaker than we expected. SWHYHK is likely to remain SWHY group's primary offshore platform and play a crucial role in carrying out the group's international strategy as the only fully licensed brokerage firm in overseas markets. In our view,

...April 21, 2022 HONG KONG (S&P Global Ratings) April 22, 2022--We will continue to assess Shenwan Hongyuan (H.K.) Ltd. (SWHYHK) as a core subsidiary of its parent Shenwan Hongyuan Securities Co. Ltd. (SWHY) despite its net loss in 2021. This means we believe SWHYHK is likely to continue to receive support from the group under any foreseeable circumstances. While SWHYHK's HK$95.8 million loss is not significant relative to the group's net profit of Chinese renminbi (RMB) 9.5 billion (about HK$11.6 billion), the result was weaker than we expected. SWHYHK is likely to remain SWHY group's primary offshore platform and play a crucial role in carrying out the group's international strategy as the only fully licensed brokerage firm in overseas markets. In our view, a year of earnings volatility would not change the group's strategy for the company, given the relatively short history of revamping its Hong Kong operations. SWHYHK accounted for about 4.7% of the group's total assets and and 4.0% of...

Bulletin