Haitong Securities Co. Ltd. (SHSE:600837, Financial) declined materially during the quarter in sympathy with the broad decline in China equities, particularly given the company’s sensitivity to margin balances and equity market trading volumes. We remain comfortable with Haitong’s long-term prospects given the anticipated shift in China credit provision from the traditional bank sector in favor of the securities industry which we believe is currently in the very early stage. (Michael Kass)
From Baron Funds' Baron International Growth Fund shareholder letter for third quarter 2015.
