Steady business profile and diversified revenue sources. Solid market position in China's securities sector. Untested groupwide risk management through a credit cycle. Volatile earnings due to large and market-sensitive investment gains. The stable outlook on Haitong Securities Co. Ltd. (Haitong) reflects our expectation that the company will maintain a risk-adjusted capital (RAC) ratio of 10%-15% over the next 24 months. We also expect the company to maintain its leading position in China's securities sector and remain a government-related entity of the Shanghai municipal government. The stable outlook on Haitong International Securities Group Ltd. (HTI) reflects the outlook on Haitong and our expectation that HTI will remain a core subsidiary of Haitong over the next two years. Therefore, the ratings on
