Hangzhou Linjiang Investment Development 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 Hangzhou Linjiang Investment Development Co., Ltd. (“Linjiang Investment” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Qiantang District (“Qiantang government”) would provide strong support to Linjiang Investment if needed, in light of its 100% ownership of Linjiang Investment through the Hangzhou Qiantang New District Management Committee (“Qiantang District MC”), the high strategic importance of Linjiang Investment to Qiantang District (“Qiantang”) in infrastructure construction and state-owned asset operation, as well as industrial park construction in Xiaoshan Linjiang High-tech Industrial Park (“Linjiang High-tech Zone”), and the strong linkage between the Qiantang government and Linjiang Investment, including control and supervision over Linjiang Investment’s management, strategic alignment and operational and financial support. In addition, the Qiantang government and other state-owned companies in the region may face significant negative impact on its reputation, business and financing activities if Linjiang Investment encounters any operational and financial difficulties.

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