Exceptional franchise in Hong Kong Very strong financial profile supported by superior customer deposit base Status as a core member of the HSBC group Modestly high industry risk in some Asian markets where the bank has been growing its businesses Concentrated exposure to property The ratings on Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia-Pacific) reflect the bank's status as a core entity of the HSBC group, led by HSBC Holdings PLC (AA-/Stable/A-1+). We rate the core operating entities of the HSBC group at 'AA/A-1+' with stable outlooks. The ratings on HSBC Asia-Pacific also reflect the bank's leading position in terms of assets and branch network in the domestic banking sector in Hong Kong, its extensive presence in the Asia-Pacific
