Issuer and Rating Results
Guohai Securities Co., Ltd.
Rating: AAA/stable
Tracked Debt Instruments and Rating Results
| Debt Instrument | Current Rating | Previous Rating | Previous Rating Validity | Issuance Amount/Balance (Billion) | Duration | Special Terms |
|---|---|---|---|---|---|---|
| 25 Guohai 01 | AAA | AAA | 2025/04/17 to report date | 20/20 | 2025/05/09~2027/05/09 | -- |
| 25 Guohai 03 | AAA | AAA | 2025/05/30 to report date | 10/10 | 2025/06/13~2028/06/13 | -- |
| 25 Guohai 04 | AAA | AAA | 2025/09/17 to report date | 12.7/12.7 | 2025/10/14~2026/10/16 | -- |
Rating Reasons
According to international practices and regulatory requirements, China Chengxin International must conduct tracking ratings for the company's bonds during their duration to monitor risk levels. This periodic tracking rating maintains the previous conclusions based on positive factors such as the strong strength of Guohai Securities' shareholders, significant regional competitive advantages, and comprehensive business licenses. However, the agency also notes that the company's operations are susceptible to external environmental influences, competitive strength needs improvement, and risks related to stock pledge business require ongoing attention.
Rating Outlook
China Chengxin International believes that Guohai Securities' credit level will remain stable over the next 12-18 months. Factors that could trigger an upgrade are not applicable. Potential downgrade triggers include significant governance and internal control failures, deterioration in financial conditions such as asset quality decline and insufficient capital, and a substantial weakening of external support capabilities and willingness.
Positive Factors
- The actual controller, Guangxi Investment Group Co., Ltd., is a holding enterprise under the Guangxi Zhuang Autonomous Region government, with strong comprehensive strength.
- As the only listed brokerage in Guangxi, it has regional competitive advantages and brand effects, with a leading market share in securities brokerage in Guangxi.
- The company has a complete range of business licenses, diverse business types, and multiple income sources, with wealth management, investment management, and sales trading being the main revenue sources.
Concerns
- The stability of the company's operations and sustainable profitability is easily affected by macroeconomic conditions and capital market policies.
- With the accelerated opening of the domestic securities industry and the relaxation of restrictions on mixed operations, competition from domestic and foreign brokerages and commercial banks is intensifying, necessitating improvements in the company's competitive strength.
- Apart from the securities false statement liability dispute with Jintongling Technology Group Co., Ltd., the company disclosed 24 litigation matters in its 2025 annual report, with amounts exceeding 50 million yuan, primarily related to stock pledge repurchase transaction contract breaches and securities false statement liability disputes.