Fitch assigns China Galaxy Securities BBB+

Fitch Ratings said it assigned China Galaxy Securities Co., Ltd. (CGS) and its subsidiary, China Galaxy International Financial Holdings Ltd. (CGI), long-term issuer default ratings of BBB+.

CGS is 51% owned by China Galaxy Financial Holdings Co. Ltd., which is 69% owned by Central Huijin Investment Co., Ltd. Central Huijin is authorized by the state council to make equity investments in major state-owned financial enterprises and has control of CGS.

“CGS' rating is underpinned by our view of a high probability of extraordinary support from its largest shareholder, Central Huijin, if needed. CGS's market position and business performance in its respective markets, together with its shareholder linkages, allow the Chinese authorities to pursue a broader financial reform agenda and direct financing objectives,” Fitch said in a press release.

The outlook is stable.

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