Summary: The Hongkong and Shanghai Banking Corp. Ltd.

High systemic importance in Hong Kong. Market-leading business position. Strong funding and liquidity. Core member and integral subsidiary of the HSBC group. Exposure to China and emerging markets with higher economic risk than Hong Kong. High, albeit well-managed, exposure to the Hong Kong property sector. The stable outlook on The Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific) reflects our belief that the bank will maintain strong stand-alone credit characteristics over the next 12-24 months. The outlook also reflects our view that HSBC Asia Pacific will continue to have "high systemic importance" in Hong Kong and that the Hong Kong government will remain "highly supportive" toward the banking sector. Further, we expect no change to HSBC Asia Pacific's core

...High, albeit well-managed, exposure to the Hong Kong property sector. Outlook: Stable The stable outlook on The Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific) reflects our belief that the bank will maintain strong stand-alone credit characteristics over the next 12-24 months. The outlook also reflects our view that HSBC Asia Pacific will continue to have "high systemic importance" in Hong Kong and that the Hong Kong government will remain "highly supportive" toward the banking sector. Further, we expect no change to HSBC Asia Pacific's core status within the HSBC group. We believe that an upgrade is unlikely for the coming one to two years because HSBC Asia Pacific is already rated highly when compared with global peers. We also believe that a downgrade is unlikely. We could lower the rating on HSBC Asia Pacific if: (1) we lower the '##-' group credit profile (GCP) of HSBC or we no longer consider HSBC Asia Pacific as a core subsidiary of the group; and (2) we believe that...

Summary