KUALA LUMPUR, Feb 10 -- Guotai Junan International Holdings Limited’s (Guotai Junan International or GTJAI) ‘Baa2’ long-term issuer rating has been reaffirmed with stable outlook by Moody’s Investor Service (Moody’s).
This is the second time that Guotai Junan International has obtained the reaffirmed investment-grade credit rating by Moody’s since July 2019, indicating the highest rating among the Chinese securities companies in Hong Kong currently.
GTJAI standalone assessment reflects three credit strengths namely, leading position in the niche market of helping individuals from the mainland trade offshore securities; relatively good and stable profitability; and, long track record of operating in the Hong Kong securities market.
The report mentioned that GTJAI’s stable rating outlook reflected that Guotai Junan International was expected to maintain sound financial metrics, and government’s support was unlikely to change in the next 12-18 months.
Moody’s also pointed out that GTJAI has maintained good profitability metrics in recent years. Its brokerage commission rose by seven per cent in the first half of 2019 while the average daily stock trading volume in the Hong Kong market declined by 23 per cent during the period.
GTJAI has a transparent business model and follows prudent risk control procedures. From two-year observation, Moody’s opined that the business model of GTJAI’s structured products (financial products) is transparent and effective.
Moody’s in its report also mentioned the underlying assets of structured products, as well as Guotai Junan International’s built-in risk control measures in structured products business, according to a statement.
Guotai Junan International will strive to enhance risk-adjusted return on capital, pursue a high-quality and sustainable development and reward clients and investors for their long-term support with a steady and desirable growth.
More details at http://www.gtjai.com.
-- BERNAMA
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