High systemic importance in Hong Kong Very strong, market-leading business position Strong funding and liquidity Core member, and integral subsidiary, of the global 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 Our ratings on The Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific; HBAP) reflect the bank's "very strong" business position, "adequate" capital and earnings, "adequate" risk position, "above average" funding, and "strong" liquidity, as our criteria define these terms. The rating is one notch higher than the stand-alone credit profile (SACP), reflecting our view of a high likelihood of government support, due to HBAP's high systemic importance in Hong Kong (AAA/Stable/A-1+;
