EQS-News / 29/07/2019 / 10:57 UTC+8
[To: Business Editor][For Immediate Release]
/
_(Incorporated in Hong Kong with limited liability)_
*Moody's and S&P reaffirmed Guotai Junan International's
Investment-grade Credit Ratings*
[29 July 2019, Hong Kong] *Guotai Junan International Holdings Limited
*("*Guotai Junan International*", "*GTJAI*", the "*Company*" or "*Group*",
stock code:*1788*) is pleased to announce that Moody's Investor Service
("*Moody's*") and Standard & Poor's ("*S&P*"), the major global credit
rating agencies, have both reaffirmed the Company's investment-grade credit
ratings. While both assigning the Company with a stable outlook, Moody's has
maintained Guotai Junan International's Baa2 long-term and P-2 short-term
issuer ratings, and S&P has maintained its BBB+ long-term and A-2 short-term
issuer ratings, marking the highest ratings among the Chinese securities
companies in Hong Kong currently.
S&P believed that Guotai Junan International's ratings reflected its
position as a core overseas subsidiary of Guotai Junan Securities Company
Limited("*GTJA*"). According to S&P report, GTJA increased its ownership of
GTJAI to 68% as of May 31, 2019, and GTJAI's contribution to its parent
company is expected to maintain a growth trend in the next one to two years.
As for its business, given that Guotai Junan International set up a new
wealth management center in HK in 2018, S&P expected to see more synergies
among its wealth management business and other business lines as well as the
parent company's wealth management business.
Moody's believed that GTJAI's ratings reflected its three major advantages:
(1) leading position in the niche market of helping mainland investors to
invest in Hong Kong securities market; (2) relatively good and stable
profitability; and (3) long track record operating in the Hong Kong
securities market.
Meanwhile, the Company has also established its franchise in corporate
finance supported by its parent company's network and client base in
mainland China. According to the report, based on its two years of
observation from Moody's, the business model of GTJAI's financial products
(also referred as "structured products"), which realized rapid expansion in
recent years, is valid and transparent.
Guotai Junan International believes that the leading position of its credit
ratings among the Chinese financial institutions in Hong Kong is benefited
from its years of persistence in prudential and rigorous risk management.
The Company will keep up with the efforts to seize market opportunities and
strengthen its leading position in the industry, aiming to increase risk
adjusted return on capital and reward its clients and investors for their
long-term support with a steady, sustained and high compound growth.
*About Guotai Junan International Holdings Limited*
*Guotai Junan International* is the market leader and first mover for
internationalization of Chinese Securities Company. The Company is the first
Chinese securities broker listed on the Main Board of The Hong Kong Stock
Exchange by way of initial public offering. Based in Hong Kong, the Company
provides diversified integrated financial services. The core services
include: wealth management, brokerage, corporate finance, loans and
financing, asset management and financial products.
The Company is one of the constituents of HSCI, Hang Seng Composite LargeCap
& MidCap Index, FTSE HK index and FTSE HK ex H share index. Guotai Junan
International has been assigned "Baa2 / Prime-2" and "BBB+ / A-2" rating
from Moody and Standard & Poor respectively.
The controlling shareholder, Guotai Junan Securities Company Limited (Stock
Code: 601211.SS; 2611.HK), is the comprehensive financial provider with a
long-term, sustainable and overall leading position in the Chinese
securities industry. Backed by strong operational support, the Company will
be able to further explore the HK and the Asia-Pacific market, aiming to
become an important financial institution with market influence in the
region.
For more information about Guotai Junan International: http://www.gtjai.com
Document: http://n.eqs.com/c/fncls.ssp?u=YCFVMYOWRD [1]
Document title: Moody's and S&P reaffirmed Guotai Junan International's
Investment-grade Credit Ratings
29/07/2019 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
Media archive at www.todayir.com
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=31543870232b83bf78fa4307e1119ac7&application_id=847711&site_id=vwd&application_name=news
(END) Dow Jones Newswires
July 28, 2019 22:57 ET (02:57 GMT)
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