Issuer and Rating Results
Guohai Securities Co., Ltd.
Rating: AAA/stable
Bond Issuance Details
The total issuance scale of this bond is capped at 1.5 billion RMB, with a term of 2 years and 6 months (916 days). The repayment priority of this bond in bankruptcy liquidation is equivalent to the issuer's general debt. The raised funds of 1.5 billion RMB will be used for refinancing the principal of existing bonds "23 Guohai 01" with 500 million RMB and repaying interbank borrowing with 1 billion RMB.
Rating Opinion
China Chengxin International has affirmed that Guohai Securities Co., Ltd. (hereinafter referred to as "Guohai Securities," "the Company," or "the Issuer") benefits from strong shareholder strength, significant regional competitive advantages, and comprehensive business licenses, which support the company's overall operations and credit level. However, the agency 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 Co., Ltd.'s credit level will remain stable over the next 12 to 18 months. Factors that may trigger an upgrade are not applicable. Factors that may lead to a downgrade include significant flaws in corporate governance and internal controls, deterioration in financial conditions such as declining asset quality or insufficient capital, and a substantial weakening of external support capabilities and willingness.
Positive Factors
- The actual controller of the company, Guangxi Investment Group Co., Ltd. (hereinafter referred to as "Guangxi Investment Group"), is a holding enterprise under the People's Government of Guangxi Zhuang Autonomous Region, with strong comprehensive strength.
- As the only listed brokerage in Guangxi, the company 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 sources of income, with wealth management, investment management, and sales trading being the main income 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, the company faces fierce competition from domestic and foreign brokerages and commercial banks, necessitating improvements in its competitive strength.
- Apart from the securities false statement liability dispute involving Jintongling Technology Group Co., Ltd., the company disclosed 24 litigation matters in its 2025 annual report, with amounts exceeding 50 million RMB, primarily related to stock pledge repurchase transaction contract breaches and securities false statement liability disputes.