Haitong Securities Co. Ltd. And Haitong International Securities Group Ltd.

The stable outlook on HTS reflects our expectation that the company will sustain its strong capitalization and business position, and maintain close links with the Shanghai government over the next 12-24 months. We also expect HTS to keep tightening its control over subsidiaries and have earnings stability on par with the sector trend. We could downgrade HTS if we revise downward our assessment of its stand-alone credit profile (SACP). This could happen if any of the following occurs: The company's risk-adjusted capital (RAC) ratio falls below 10% over the next two years, possibly due to aggressive business expansion; The company shows higher earnings volatility, which could be due to slower migration to an asset-light model or material loss from weak

...Haitong Securities Co. Ltd. (HTS) will maintain a strong market position with diversified business lines and geographic coverage. The company is a top-ranking securities firm with a strong network and customer base in China. HTS has a financial leasing subsidiary in China and strong branding in Hong Kong that further complements its product offering for capital market services across the regions where it operates. The company covers Europe and Latin America via its fully owned subsidiary Haitong Bank S.A. Moderately high likelihood of government support will likely remain. We believe HTS will maintain its close link with the Shanghai government. Our view considers the government's significant influence on HTS' board of directors and top management team. As a top-ranking securities firm headquartered in Shanghai, HTS also contributes to the city's goal of becoming an international financial center....

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