Huatai Securities subsidiary issues $540m in notes guaranteed by parent

Huatai Securities Co., Ltd. announced that its indirect wholly-owned subsidiary, Huatai International Finance Co., Ltd. (Huatai International Finance), has issued mid-term notes totaling $0.54 billion under its existing medium-term note program. This issuance is guaranteed by Huatai International Financial Holdings Company Limited, a wholly-owned subsidiary of Huatai Securities. The current guarantee amount for this issuance is $0.54 billion, bringing the total outstanding guarantee amount to $10.94 billion.

The company's board of directors and shareholders previously approved a general authorization for domestic and overseas debt financing instruments, which includes providing guarantees for wholly-owned overseas subsidiaries with an asset-liability ratio exceeding 70%. Huatai International Finance's asset-liability ratio exceeds 70%, but as a wholly-owned subsidiary, its debt repayment capacity is closely monitored, making the guarantee risk controllable.

As of the announcement date, the total external guarantees by Huatai Securities and its controlling subsidiaries amount to RMB 417.60 billion. All guarantees are provided to subsidiaries, with RMB 339.41 billion provided to controlling subsidiaries, representing 21.79% and 17.71% respectively of the company's latest audited net assets. There are no overdue guarantee debts.