Haitong Securities Co. Ltd. (06837.HK, 600837.CN) on Monday denied media reports that it suffered heavy losses in its bond investments. In a regulatory filing, the company also said it has abundant cash reserves, and its debt-to-assets ratio is under 30 percent, lower than the market average. Haitong said the bond product suffers floating losses because of market turbulence. However, such losses are expected to be cut when the bond matures and the principal and interests are redeemed, it said. Provisions for such floating losses, which amounted to 88.22 million yuan (US$14.45 million), have been included in its third quarter report out of precaution and in compliance with relevant laws and accounting policies, the filing said.
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