Heshan Public Asset Management 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 Heshan Public Asset Management Co., Ltd. (“HPAM” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s Government of Heshan City, Guangdong Province (“Heshan government”) would provide strong support to HPAM if needed, in light of its full ownership of HPAM, HPAM’s strategic importance as the key local investment and development company (“LIDC”) that is responsible for infrastructure construction and state-owned asset operation in Heshan City, Jiangmen City (“Heshan”), and the linkage between the Heshan government and HPAM, 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 Heshan government may face significant negative impact on its reputation and financing activities if HPAM encounters any operational and financial difficulties.

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