Core subsidiary of Hang Seng Bank and HSBC Group Good asset quality Satisfactory capitalization Exposed to a market carrying inherently high credit risk Constrained, though improving funding profile Marginal profitability The ratings on Hang Seng Bank (China) Limited primarily reflect the moderately risky banking environment in China (A+/Stable/A-1+) and a challenging regulatory environment for asset and liability management. These risk factors are partly tempered by the benefit of being wholly owned by Hang Seng Bank Limited (AA/Stable/A-1+), which is a core subsidiary of HSBC Bank PLC (AA-/Stable/A-1+). The long-term rating on Hang Seng China incorporates five notches of uplift from the standalone rating to reflect strong expected support if needed. On a stand-alone basis, the ratings also reflect the bank's
