Changsha Jinzhou New City Investment Holding Group Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘BBB+’ global scale Long-term Issuer Credit Rating with Stable Outlook to Changsha Jinzhou New City Investment Holding Group Co., Ltd. (“CJNCI” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Changsha City, Hunan Province (“Changsha government”) would provide moderately strong support to CJNCI if needed, in light of its controls over CJNCI through its representative office, The Ningxiang High-tech Industrial Development Zone Management Committee (“Ningxiang HIDZ MC”), CJNCI’s strategic importance as the sole local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Ningxiang High-tech Industrial Development Zone (“Ningxiang HIDZ”), and the linkage between the Changsha government and CJNCI, including appointment and supervision of the senior management, strategic alignment, major investment and financing plan decisions and ongoing operational and financial support. In addition, the Changsha government and Ningxiang HIDZ MC may face negative impact on its reputation and financing activities if CJNCI encounters any operational and financial difficulties.

The Stable Outlook reflects our expectation that CJNCI’s strategic importance would remain intact while the Changsha government will continue to ensure CJNCI’s stable operation.