Haitong Securities' (HKG:6837, SHA:600837) net loss guidance for Q4 of 2024 reflects efforts to dispose of some assets before the company's proposed merger with Guotai Junan Securities (HKG:2611, SHA:601211), S&P Global Ratings said in a Monday release.
The move will allow for the merged group to have an improved creditworthiness, according to S&P.
The China-based securities company issued a profit warning saying that it had a loss of about 2.7 billion yuan in the quarter, which could be due to write-offs of its weakened legacy Hong Kong portfolio, S&P said.
The rating agency said the deal could be completed in the next six months.
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