Guotai Junan International Holdings Limited
Moody’s has raised Guotai Junan International’s Credit Ratings

Guotai Junan International Holdings Limited
(Incorporated in Hong Kong with limited liability)

Moody’s has raised Guotai Junan International’s Credit Ratings

[27 February 2017, Hong Kong] Guotai Junan International Holdings Limited (together with its subsidiaries, collectively referred as “Guotai Junan International” or “the Company”, Stock code: 1788.HK) is pleased to announce that, Moody’s Investors Service (“Moody’s”) has affirmed the long-term and short term (local/foreign currency) issuer ratings of the Company at Baa2/P-2, outlook changed to stable from negative on long-term issuer ratings .

Moody’s has raised the Company’s standalone assessment from ba2 to ba1, attributable to the sound financial metrics of the Company under the new methodology, and the Baa2 long term issuer ratings also reflect a two-notch uplift based on Moody’s assumption of a high level of support from the Chinese government in times of stress.

The ratings rationale of Moody’s includes:

– ( Guotai Junan International is in a leading position in the niche market of facilitating Mainland individuals to make offshore securities investments, and has established a large high-net-worth client base in the past 20 years.

– (The majority of the Company’s revenues are related to the trading activities of its retail clients. Its brokerage and margin loan businesses, which carry low asset impairment risk, contributed 16% and 44%, respectively, of total revenue in 2016.

– Guotao Junan　International’s total assets increased at a　compound annual growth rate of 40.7% during 2012-2016, driven by its margin loans and structured products.

– ( Moody’s sees a high level of support from Guotai Junan International’s parent company,Guotai Junan Securities, and the Shanghai government through the parent as the Company serves as the gateway of international business operation of the parent.

Dr. Yim Fung, JP, Chairman and CEO of Guotai Junan International, said, “We are very excited about the raised credit rating from Moody’s, which once again demonstrated the international recognition of our prudent business development and risk management system. The recognition from the international rating agency not only reinforces our market leading position, but also can further reduce our capital costs, resulting in more room for development. We will continue to develop our high net worth individual and institutional investors market, focus on expanding the targeted customer base, so as to provide our customers with the best quality financial service.”

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About Guotai Junan International Holdings Limited

Guotai Junan International is the market leader and first mover for internationalization of Chinese securities company. The Company is the first Chinese securities broker to list on the Main Board of The Hong Kong Stock Exchange by way of initial public offering. Based in Hong Kong, the Company provides diversified integrated financial services. The five core services include: (i) brokerage, (ii) corporate finance, (iii) loans and financing, (iv) asset management, (v) financial products, market making and investments.

The Company’s online trading platform support a total of 8 stock markets, including Hong Kong, USA, UK, Japan, Canada, Singapore, China A share and B share, as well as global bond market and more than 20 futures markets worldwide, providing leveraged foreign exchange trading for 8 currency pairs and 21 cross-currency pairs, inclusive of CNH.

The Company is one of the constituents of HSCI, Hang Seng Composite LargeCap & MidCap Index, FTSE HK index and FTSE HK ex H share index. Guotai Junan International has been assigned “Baa2 / Prime-2” and “BBB / A-2” rating from Moody’s Investor Service and Standard & Poor’s Global Ratings respectively.

Our controlling shareholder, Guotai Junan Securities Company Limited (“Guotai Junan”), is one of the China’s leading securities houses, listed on the Shanghai Stock Exchange. Guotai Junan ranked the second among Chinese brokers in terms of FY 2016 revenue. Backed by strong operational support, the Company will be able to further explore the HK and the Southeast Asia market.

For more information about Guotai Junan International: http://www.gtja.com.hk.

For enquiries, please contact:

Guotai Junan International Holdings Limited

Ms. Lydia Zhong +852 2509 2604 lydia.zhong@gtjas.com.hk