Very strong capitalization. Strong market position in China's retail brokerage segment. Conservative management. Groupwide risk management integration at early stages of development. Revenue concentrated in the stock brokerage business and investment gains. The rating on Haitong Securities Co. Ltd. reflects our view that the company will maintain its "very strong" capitalization, and strong retail brokerage franchise, market position in securities-related businesses, and earnings capacity over the next 12-24 months. Haitong's "adequate" risk management controls and funding, and "adequate-high" liquidity also support the rating. We continue to expect Haitong to benefit from a "moderate" likelihood of extraordinary support from the Shanghai municipal government. Our assessment of Haitong's stand-alone credit profile (SACP) builds on our 'bb' anchor for securities companies operating primarily
