S&P moves Haitong outlook to negative

S&P said it revised its outlook for Haitong Securities Co. Ltd. (HTS) and Haitong International Securities Group Ltd. (HTI) to negative from stable and affirmed the BBB ratings on the companies and its senior unsecured notes.

“The outlook revision follows the group's recent profit warning on its 2023 results. Last year's projected earnings drop of 85% was mainly driven by the weak financial performance of the group's overseas operations stemming from asset revaluation losses and high funding cost. The repeated weak performance could signal HTS' weakening earnings power and HTI's waning importance to the group if business strength and growth momentum cannot be restored in a timely manner,” S&P said in a press release.

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