GF Securities Co. Ltd. (GFFHBV)

GF Securities’ current credit quality can be assessed as investment-grade for a major Chinese securities company. The direction is stable, and the earnings recovery and regulatory metrics from 2025 through the first quarter of 2026 are good. However, given the expansion in total assets, repo, short-term funding and trading and institutional business, it is appropriate to reserve judgement on whether credit quality has improved. In normal conditions, the probability of a sharp change in credit quality is not high, but because the company is a market-based financial issuer, the speed of change can accelerate when market declines, collateral and repo conditions, ratings and regulatory sanctions move together.

The core supports for the parent credit are the franchise as a leading securities company, earnings recovery since 2025, asset management platform, and headroom in parent net capital and liquidity metrics. GF Securities is not an issuer dependent on a single investment banking deal or small-scale brokerage business. It is connected to multiple revenue pools through wealth management, trading and institutional services, and investment management. Net capital of RMB113.072bn, a risk coverage ratio of 244.32%, LCR of 202.34% and NSFR of 152.70% at end-March 2026 are important grounds supporting current credit quality.

At the same time, this credit view does not rely on an explicit government guarantee or parent guarantee. GF Securities is a major securities company with a relatively non-government-controlled profile, and the same support expectations as for CICC or CITIC Securities should not be applied automatically. Supervisory and market importance, domestic market access, and relationships with local and major shareholders may be support factors, but they are different from legal guarantees. Therefore, the company’s credit is explained more by its own capital, liquidity, revenue base, market access and risk management capabilities than by support expectations.