Leading market position in Hong Kong High systemic importance in Hong Kong Solid capital and earnings Strong funding and liquidity High exposure to Hong Kong property sector Increasing exposure to China, which has higher economic risk than Hong Kong The stable outlook reflects our expectation that The Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific) will maintain its strong business and financial strength over the next 24 months due to its dominant market position, solid capitalization, and stronger-than-average funding and liquidity profile. We also consider that the bank will continue to benefit from potential extraordinary support from the Hong Kong government in times of stress, and remain a core subsidiary of the HSBC group. We believe that an upgrade
