Full text of HAITONG INTERNATIONAL SECURITIES (USA) INC.'s X-17A-5 filed 2021-03-29 (period 2020-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ #### NOTE 1 - ORGANIZATION Haitong International Securities (USA) Inc. (the "Company") is a wholly owned subsidiary of Haitong International (BVI) Limited, a company owned by Haitong International Securities Group Limited (the "Parent"), within the Haitong Securities Group of companies. The Company is a registered broker-dealer under the U.S. Securities Exchange Act of 1934 of the U.S. Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"). On April 27, 2018, the Company became a member of the National Association of Securities Dealers Automated Quotations ("NASDAQ"). The Company markets globally branded research on international companies listed on global stock exchanges to institutional investors primarily in the United States. The Company also executes securities transactions through 1 Sa-6 chaperoning arrangements and through a chaperoning agreement in a sub-account arrangement with their affiliate, in addition to providing services to other foreign affiliates in relation to the management fee sharing agreement for fixed income products, equities and corporate finance services. The Company has incurred losses from operations, though forecasts profitability for the 2021 calendar year. In the event of continued losses, the Company's ability to continue as a going concern would be supported by the continued financial support of the indirect Parent, Haitong International Securities Group Limited, which has indicated that it will provide additional capital as needed to sustain the Company one year from the date these financial statements are available to be issued. The Company does not carry customer accounts or otherwise hold funds or securities for customers and is, accordingly, exempt from the reserve requirement of SEC Rule 15c3-3 under paragraph (k)(2)(i) and (k)(2)(ii). The Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to: 1) proprietary trading; (2) receiving transaction-based compensation for identifying potential merger and acquisition opportunities for clients, referring securities transactions to other broker-dealers, or providing technology or platform services. #### NOTE2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES # BASIS OF PRESENTATION The Company prepares its financial statements in accordance with accounting principles gene…Read the full text as markdown