Intermediate industry and country risk because inward P&C reinsurance from China-based sister company CPPIC accounts for a large portion of the business. Less than adequate competitive position, reflecting CPIC HK's tiny market share in the competitive Hong Kong P&C market. Extremely strong capital adequacy relative to its risk profile, counterbalanced by a small capital base. Adequate financial flexibility reflecting potential support from the listed parent, if needed. Intermediate risk position, with manageable foreign exchange exposure. Strategically important subsidiary of CPIC Group. Adequate enterprise risk management and fair management and governance. Strong liquidity profile with no immediate refinancing needs and ample liquid assets. The negative outlook on China Pacific Insurance Co. (H. K.) Ltd. (CPIC HK) over the next two years
