Solid market position in China's broker sector with diversified revenue sources. Improved group-wide risk control framework while effectiveness is yet to be tested. Closer link with the Shanghai municipal government after the recently completed private placement. Rapid capital consumption due to fast-growing finance lease business. Volatile earnings due to large, market-sensitive investment gains. Significant increase in provisions from finance lease and bond investment books. The stable outlook on Haitong Securities Co. Ltd. reflects our expectation that the company will maintain its risk appetite and loss experience over the next 24 months. We also expect Haitong to sustain its strong capitalization and business position and remain a government-related entity of the Shanghai municipal government over the period. The stable outlook on
