The ratings on The Hongkong and Shanghai Banking Corp. (HSBC Asia Pacific) reflect the bank's stand-alone profile, which is enhanced by the advantages of its membership in the wider HSBC Holdings plc group (HSBC group, A+/Stable/A-1). HSBC Asia Pacific profits from its dominant position within the Hong Kong domestic banking market and extensive presence within the Asia-Pacific region. The bank continues to report good profitability, diversified earnings, satisfactory asset quality, a stable funding base, and adequate capitalization. The bank also benefits from the synergies arising from the operations of other major subsidiaries of its U.K.-based parent. These favorable factors are counterbalanced by the above-average industry risk that characterizes the banking sectors in Hong Kong and other Asian locations. The bank
