Fitch Ratings has affirmed Guosen Securities' (SHE:002736) long-term issuer default rating at BBB+, with a stable outlook.
The rating reflects Shenzhen Investment Holdings', which holds an effective stake of about 47%, legal obligations to provide capital support, strong board control and reputational risks if Guosen Securities defaults, according to a weekend research note.
Fitch said the sector risk operating environment score stood at bbb-/stable, pointing to regulatory strengthening and state-led consolidation that bolster long-term resilience despite market volatility and geopolitical headwinds.
Shares of the brokerage company were up 1% in recent trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.