Fitch Ratings expects state shareholders to be more discerning in terms of support for Chinese securities firms, according to a Sunday release.
State-driven sector consolidation and a structural shift in the economy drive greater selectivity in terms of shareholder support, Fitch said.
Strategic relevance will factor in more into support consideration for securities firms rather than ownership alone, the rating agency said.
Group resource integration, synergies, and shareholder and national policy goal endorsement will determine the firms that will be prioritized for state support, Fitch said.
Tiering as a result of past consolidation anchors the goal of supporting two or three globally competitive securities firms, but also increases the gap between higher-tier and weaker firms, according to Fitch.
The shift to greater capital market activity from debt-linked growth has also increased securities firms' strategic value to state shareholders, Fitch said.