Rated securities firms in major Asia-Pacific markets show strength despite lingering equity market volatility, Fitch Ratings said in a recent release.
Securities companies in Korea, Japan, Taiwan, and China display sufficient capital buffers, solid risk control frameworks, and adherence to strict regulatory oversight, the rating agency said.
Net adjusted leverage has risen in the sector since 2025, reaching about 8x to 9x in Korea and Taiwan and 12x to 13x in Japan, due to asset expansion and stronger capital market activity, according to Fitch.
Direct credit risk from margin financing and similar securities-backed lending will remain limited due to tight margin maintenance requirements and active collateral monitoring, the rating agency said.
Investment books continue to account for the largest asset share for firms, making up 60% of assets in Korea, 40% to 50% in China, and 30% to 40% in Japan and Taiwan, Fitch said.