Research Update: Haitong Securities And Haitong International Securities Ratings Placed On Watch Positive On Merger Progress

In our view, the recent development on Haitong Securities Co. Ltd.'s (Haitong) delisting plan signals steps toward a consolidation with Guotai Junan Securities Co. Ltd. (GTJA), which has a stronger credit profile. We placed our 'BBB' long-term issuer credit ratings on Haitong and its subsidiary Haitong International Securities Group Ltd. on CreditWatch with positive implications. At the same time, we took a similar action on the long-term issue ratings on the bonds or programs that Haitong and Haitong International Securities issued or guaranteed. We expect to resolve the CreditWatch after the merger is complete. This will likely happen within the next three months. On Feb. 18, 2025, S&P Global Ratings placed the following ratings on CreditWatch with positive implications: The

...- In our view, the recent development on Haitong Securities Co. Ltd.'s (Haitong) delisting plan signals steps toward a consolidation with Guotai Junan Securities Co. Ltd. (GTJA), which has a stronger credit profile. - We placed our '###' long-term issuer credit ratings on Haitong and its subsidiary Haitong International Securities Group Ltd. on CreditWatch with positive implications. At the same time, we took a similar action on the long-term issue ratings on the bonds or programs that Haitong and Haitong International Securities issued or guaranteed. - We expect to resolve the CreditWatch after the merger is complete. This will likely happen within the next three months....

Research Update