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State Support for China's Securities Firms Turns More Selective, Says Fitch

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Fitch Ratings said shareholder support for Chinese securities firms is becoming increasingly selective amid state-led consolidation and economic restructuring.

Support will depend more on strategic relevance rather than mere ownership, with firms that integrate group resources and advance national policy goals ranking higher, according to a weekend research note.

Recent mergers, including Guotai Junan's combination with Haitong and CICC's upcoming integration of Cinda and Dongxing, highlight the accelerating tiering trend, the rating agency said. Local governments are similarly consolidating regional platforms.

As China transitions from debt-driven growth, capital markets will play a larger role in financing and risk resolution.

"This should raise firms' policy relevance, given their ability to deploy equity-linked financing tools, support state capital efficiency, facilitate problem-asset restructuring and channel funding to strategic sectors," Fitch said.

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