Guotai Junan International Holdings Limited:
Risk Management Creates Value - High Credit Rating, Low Financing Cost
WIN-WIN for the Company and Clients

[17 November 2017, Hong Kong] The IPO market sentiment in Hong Kong has been hot recently. Tencent's China Literature Limited (0772.HK), e-sports concept stock Razer Incorporation (1337.HK) and the Mainland online auto retail trading platform Yixin Group Limited (2858.HK) went IPO in succession, which has stirred up a boom of subscription of IPOs. Guotai Junan Securities (Hong Kong) Co. Ltd., a subsidiary of Guotai Junan International Holdings Limited (with its subsidiaries, as "Guotai Junan International" or the "Company", Stock code: 1788.HK) reserved capital for IPO margin finance for China Literature Limited, Razer and Yixin Group Limited, with competitive annualized margin rate at 1.35% ,1.95% and 1.68 %, respectively. The interest level is lower than most of the financial institutions in the market.

Guotai Junan International has always adhered to the sound risk management despite rapid growth of the Company. In order to further strengthen loans and financing business and to lay a solid foundation for long-term, stable business growth, the Company had early adoption of HKFRS 9 accounting standard in the first half of 2017 and took the initiative to restructure the margin loan portfolio for controlling and minimizing the Company's exposure on small-cap stocks with low liquidity.

The Company's credit ratings had been further raised with its restless efforts. Moody's and S&P both raised the Company's individual rating to "Ba1" and long-term issuer's ratings to "BBB+" , respectively. The Company now enjoys the highest credit ratings among the Chinese brokerages in Hong Kong, which has great help in lowing the funding cost. In the meantime, the Company has been proactively expanding and diversifying its financing channels to further control the financing costs. The Company successfully cut the financial cost by 5% in the first half this year, enabling the Company to provide financial products and services to clients with better edges and to achieve win-win results for both the Company and clients.

The Company has no branches in Hong Kong apart from the office in Sheung Wan, and about 80% brokerage income comes from the Internet trading system of the Company. In addition to global securities trading, the margin loans can be applied independently through the Company's Internet platform at any time. Application, approval and loan accounted process are handy and fast, being well received by the clients.

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About Guotai Junan International Holdings Limited

Guotai Junan International is the market leader and first mover for internationalization of Chinese Securities Company. The Company is the first Chinese securities broker to list on the Main Board of The Hong Kong Stock Exchange by way of initial public offering. Based in Hong Kong, the Company provides diversified integrated financial services. The five core services include: (i) brokerage, (ii) corporate finance, (iii) loans and financing, (iv) asset management, (v) financial products, market making and investments.

The Company's online trading platform support a total of 8 stock markets, including Hong Kong, USA, UK, Japan, Canada, Singapore, China A share and B share, as well as more than 20 futures and options markets worldwide, providing leveraged foreign exchange trading for 8 currency pairs and 21 cross-currency pairs, inclusive of CNH.

The Company is one of the constituents of HSCI, Hang Seng Composite LargeCap & MidCap Index, FTSE HK index and FTSE HK ex H share index. Guotai Junan International has been assigned "Baa2 / Prime-2" and "BBB+ / A-2" rating from Moody's Investor Service and Standard & Poor's Global Ratings respectively.

Our controlling shareholder, Guotai Junan Securities Company Limited ("Guotai Junan", Stock Code: 601211.SH; 2611.HK), is one of the China's leading securities houses. In 2015, Guotai Junan was listed on the Shanghai Stock Exchange. In April, 2017, it was listed on the Main board at Hong Kong Stock Exchange. In 2016, Guotai Junan ranked the second among Chinese brokers in terms of revenue and net profit. Backed by strong operational support, the Company will be able to further explore the HK and the Asia-Pacific market.

For more information about Guotai Junan International: http://www.gtjai.com.

For enquiries, please contact:
Guotai Junan International Holdings Limited
Ms. Lydia Zhong +852 2509 2604 lydia.zhong@gtjas.com.hk

Guotai Junan International offered competitive interest rate
China Literature Limited, Razer,Yixin Group Limited IPO margin situation（source: Ming Pao）,