Update: Zhongtai Securities Co. Ltd.

This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Very strong link with the Shandong provincial government. High portion of unhedged or illiquid proprietary investments that are more sensitive to market volatility. Strong capitalization with lower leverage than that of listed peers. Business concentration in Shandong province. A relatively small scale and mediocre market position will continue to moderate the credit strength of Zhongtai Securities Co. Ltd. We expect an ongoing policy-led industry consolidation and evolving competitive landscape to intensify competition for the company. This reflects its weaker geographic diversification than national peers. Zhongtai's strong capitalization could temper performance volatility. The company

Full Report