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Fitch Affirms Guosen Securities at BBB+ Rating

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Fitch Ratings has affirmed Guosen Securities' (SHE:002736) long-term issuer default rating at BBB+, with a stable outlook.

The rating reflects Shenzhen Investment Holdings', which holds an effective stake of about 47%, legal obligations to provide capital support, strong board control and reputational risks if Guosen Securities defaults, according to a weekend research note.

Fitch said the sector risk operating environment score stood at bbb-/stable, pointing to regulatory strengthening and state-led consolidation that bolster long-term resilience despite market volatility and geopolitical headwinds.

Shares of the brokerage company were up 1% in recent trade.

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