Fitch Assigns CITIC Securities and CSI First-Time 'A-' Ratings; Outlook Stable

About this update from Citic Securities Co. Ltd. Class A

Fitch Ratings has assigned CITIC Securities Company Limited and its wholly owned Hong Kong subsidiary, CITIC Securities International Company Limited (CSI), first-time Long-Term Issuer Default Ratings of 'A-'. The Outlook is Stable. Fitch has also assigned Shareholder Support Ratings (SSR) of 'a-' to both entities. CITIC Securities is China's leading full-service securities firm. It is 19.84%-owned by its immediate parent, CITIC Financial Holdings , which is 53.12%-owned by CITIC Group Corporation . CITIC Financial Holdings' stake in CITIC Securities will increase to 23.91% following the completion of a recently announced private placement. CITIC Securities helps coordinate and integrate the group's financial and industrial resources to advance its strategic objectives, such as supporting the real economy, strategically important industries and financial system stability. CSI houses CITIC Securities' offshore business, providing cross-border capital-market services to group entities and customers. Key Rating Drivers Support-Driven Ratings: The ratings reflect Fitch's expectation of an 'Extremely High' probability of extraordinary support from CITIC Group , with state support available to CITIC Group also flowing through to CITIC Securities , given its integral group role. The company's coordination with group entities supports the group's strategic objectives with a market-leading franchise and resilient performance that bolster the group's ability to advance government priorities, namely developing China's capital markets and broadening direct financing channels. The ratings are also supported by the significant reputational risk that a default by CITIC Securities would pose to CITIC Group . Fitch also takes into consideration the regulatory support framework under China's financial holding company regulations, which requires CITIC Group to inject capital into CITIC Financial Holdings and, in turn, CITIC Financial Holdings into CITIC Securities , when necessary. Core Subsidiary Role: We view CITIC Securities as one of the group's two core financial pillars alongside China CITIC Bank Corporation Limited (CNCB, A-/Stable). As the group's flagship securities platform, CITIC Securities' strong franchise, broad client network, deal-sourcing capability and access to investors support effective capital-market execution and pricing. It provides capital-market solutions, including equity financing, direct equity investments, restructuring and market-based asset disposals, that complement CNCB's traditional lending and advance the group's policy-related objectives. Strong Group Control and Integration: Fitch views CITIC Securities as strongly controlled by and closely integrated with CITIC Group , despite CITIC Group's modest effective ownership stake. CITIC Group exercises effective control through majority control of the board, management oversight and strategic direction, ensuring consistent execution of group strategy and effective resource integration. High Reputational Risk: Fitch believes a default by CITIC Securities would pose significant reputational risk to CITIC Group's broader franchise, given the company's status as the group's flagship securities subsidiary and prominent market position in China's securities industry. Any failure by CITIC Securities could weaken market confidence in CITIC Group subsidiaries and damage the group's standing with investors, counterparties and regulators. Sound Standalone Profile: CITIC Securities' leading domestic franchise, diversified revenue mix and expanding international presence underpin its standalone credit profile. Capital and liquidity are adequate relative to the company's risk profile, despite rising execution and risk-management demands from its increasingly complex operating model. The standalone profile is weaker than the support-driven ratings, reflecting the inherently cyclical nature of securities operations and China's still-developing capital market environment. Profitability has improved amid China's stronger capital market, with operating income/average equity rising to 12.7% in 2025 and 15.6% in 1Q26, from 9.9% in 2024. CITIC Securities demonstrates earnings resilience through economic cycles, supported by a comprehensive risk-control framework. Fitch views its capital position as adequate, with net adjusted leverage of 4.2x-5.2x, providing a healthy capital buffer. Short-term liquidity is sufficient to mitigate risks from reliance on short-term wholesale funding, with coverage of 1.8x-2.2x during 2022-2025. Support-Driven Subsidiary Rating: Fitch equalises CSI's ratings with those of CITIC Securities , reflecting an 'Extremely High' probability of extraordinary support from CITIC Securities in the event of stress. CSI is a wholly owned core subsidiary that houses CITIC Securities' offshore securities operations. It is highly integrated into CITIC Securities' operations and is integral to the group's strategy of providing capital-market services to serve group entities and clients. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The Long-Term IDRs would most likely be downgraded if China's sovereign rating (A/Stable) were downgraded or if the state's propensity or ability to provide timely support to CITIC Group were to weaken. Either would likely lead to a deterioration in CITIC Group's credit profile and, in turn, pressure CITIC Securities' ratings. CITIC Securities and CSI's ratings could be downgraded if CITIC Group's propensity to support the subsidiaries were to weaken. This could result from diminished linkage between CITIC Securities and the group, including a reduced strategic role as well as diminished group control and integration. CSI's Long-Term IDR could be downgraded if CITIC Securities shows a reduced propensity and ability to provide support. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of the sovereign rating or our improved internal assessment of CITIC Group's credit profile could lead to positive rating action on CITIC Securities' SSR and Long-Term IDR if it were to indicate a greater ability to support CITIC Securities with no less propensity to provide support. An upgrade on CSI would follow similar rating action on CITIC Securities . Date of Relevant Committee 08-Jun-2026 REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. Public Ratings with Credit Linkage to other ratings CITIC Securities' ratings are supported by Fitch's internal credit view on CITIC Group . CSI's IDR and SSR are underpinned by the extraordinary shareholder support from CITIC Securities . ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/topics/esg/products#esg-relevance-scores. RATING ACTIONS Entity / Debt Rating Type Rating Rating Action CITIC Securities Company Limited LT IDR A- New Rating Shareholder Support a- New Rating CITIC Securities International Company Limited LT IDR A- New Rating Shareholder Support a- New Rating Page of 1 VIEW ADDITIONAL RATING DETAILS Additional information is available on www.fitchratings.com PARTICIPATION STATUS The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure. APPLICABLE CRITERIA Non-Bank Financial Institutions Rating Criteria (pub. 01 Feb 2025 ) (including rating assumption sensitivity) ADDITIONAL DISCLOSURES Dodd-Frank Rating Information Disclosure Form Solicitation Status Endorsement Policy ENDORSEMENT STATUS CITIC Securities Company Limited EU Endorsed, UK Endorsed CITIC Securities International Company Limited EU Endorsed, UK Endorsed DISCLAIMER & DISCLOSURES All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings . In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions for each rating s Read More Solicitation Status The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below. Fitch's solicitation status policy can be found at www.fitchratings.com/ethics. Endorsement Policy Fitch's international credit ratings produced outside the EU or the UK , as the case may be, are endorsed for use by regulated entities within the EU or the UK , respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch's approach to endorsement in the EU and the UK can be found on Fitch's Regulatory Affairs page on Fitch's website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis. (C) 2026 Electronic News Publishing, source ENP Newswire

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