Core subsidiary of HSBC Asia Pacific The negative outlook on Hang Seng Bank (China) Ltd. (Hang Seng China) reflects our negative outlook on the sovereign credit ratings on China (AA-/Negative/A-1+; cnAAA/cnA-1+). We do not expect the bank to be rated above the sovereign. Nevertheless, we expect Hang Seng China to remain a core subsidiary of The Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific; AA-/Stable/A-1+). We could downgrade Hang Seng China if we lower the sovereign credit rating on China. In an unlikely scenario, we could also downgrade Hang Seng China if: (1) we lower the rating on Hang Seng Bank Ltd. (Hang Seng); or (2) we no longer consider Hang Seng China to be a core subsidiary of
