The waning performance of its Hong Kong operations will continue to weigh on Haitong Securities Co. Ltd. (Haitong). The deterioration affects its revenue resilience and earning retention for capital growth. Nevertheless, Haitong's strong capital, tightened control over subsidiaries, and strong link with the Shanghai government will provide buffers against a modest level of further stress. We affirmed our 'BBB' long-term and 'A-2' short-term issuer credit ratings on Haitong and its subsidiary Haitong International Securities Group Ltd. (HTI). We also affirmed the ratings on the debt the companies issued or guaranteed. The negative outlook reflects a one-in-three chance of a downgrade over the next two years due to Haitong's decreasing business resilience and earnings quality. On July 30, 2024, S&P Global
