Haitong Securities Co. Ltd.'s (HTS) earnings drop of more than 60% in 2022 and 2023 reflects draining earnings power, which could undermine its ability to absorb losses. The weak operating performance of HTS' overseas business over the past three years could indicate a waning of Haitong International Securities Group Ltd.'s (HTI) business importance to the group. We therefore revised the outlook on the long-term issuer credit ratings of HTS and HTI to negative from stable. At the same time, we affirmed our 'BBB' long-term and 'A-2' short-term issuer credit ratings on HTS and HTI. We also affirmed the ratings on the debt HTS and HTI issued or guaranteed. On Feb. 7, 2024, S&P Global Ratings revised the outlook on the
