Haitong has a strong market position in China's retail brokerage segment, a conservative management culture, and strong capitalization. The company's risk management system remains at the early stage of development, and revenue sources are concentrated in stock brokerage and investment gains. We are assigning our 'BBB' long-term and 'A-2' short-term issuer credit rating to the China-based securities company. We are also assigning our 'cnA' long-term and 'cnA-2' short-term Greater China regional scale rating to the company. The stable outlook reflects our view that Haitong could maintain its strong capitalization, adequate risk profile, and adequate funding and liquidity profiles over the next two years. On May 15, 2014, Standard&Poor's Ratings Services assigned its 'BBB' long-term and 'A-2' short-term issuer
