Fitch Ratings: Strong capital strength of Chinese securities firms, cross-border business becomes a new growth engine for securities firms

Fitch Ratings Asia-Pacific Non-Banking Financial Institutions Ratings Director Zhang Rongrong stated in an interview that Chinese securities firms have strong capital strength, with overall credit risks under control, and existing risk explosion sizes can be absorbed through capital buffers. In addition, leading securities firms are expanding their balance sheets not simply by increasing leverage or credit sinking, but by focusing on equity derivative business to profit from spread benefits, with minimal substantial risk exposure based on hedge positions. She also mentioned that cross-border business is becoming a new growth engine for securities firms, covering upgraded cross-border asset management and financial services for Chinese enterprises going global, with the proportion of overseas income for leading securities firms expected to increase to 30% in the next 3-5 years, driven by Chinese enterprises going global, and cross-border business can diversify risks in the domestic market.