We expect the subgroup under Shenwan Hongyuan (H.K.) Ltd. to remain a core unit of Shenwan Hongyuan Securities Co. Ltd. and benefit from strong support from the parent. In our view, the subsidiary will continue to serve as the group's main overseas platform and remain fully integrated with the group's business strategies and operations. Shenwan Hongyuan (H.K.) will continue to enhance the group's cross-border product and service offerings. The subgroup is a key vehicle for the group’s international strategy, strengthening the group's service capabilities and competitiveness in overseas capital markets. This is despite its somewhat volatile operating performance due to revenue susceptibility to market cyclicality. We view Shenwan Hongyuan (H.K.) as having limited structural subordination risk, although it is a
