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Fitch Affirms Industrial Securities at BBB, With Stable Outlook

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Fitch Ratings affirmed the long-term issuer default ratings of Industrial Securities (SHA:601377) and Hong Kong subsidiary China Industrial Securities International Financial Group at BBB, with a stable outlook.

The rating agency expects Fujian province to provide extraordinary support to Industrial Securities if needed, given its role in advancing regional economic stability, according to a weekend research note. The Fujian Department of Finance maintains strong oversight, with by-laws committing capital support if the subsidiary defaults.

The sector environment remains stable at bbb-, supported by regulatory improvements and state-led consolidation that bolster capital markets growth, Fitch said.

Shares of the securities company rose 1% in recent trade.

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