Jiangsu Zhongxing 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 Jiangsu Zhongxing Holding Group Co., Ltd. (“JZHG” or “the company”)

The Issuer Credit Rating reflects a high possibility that the People’s government of Liyang (“the Liyang government”) would provide strong support to JZHG if needed. This mainly considers the Liyang government’s full ownership of JZHG, JZHG’s strategic importance as an important local investment and development company (“LIDC”) responsible for infrastructure development, resettlement housing construction and land consolidation in Liyang Economic Development Zone (“Liyang EDZ”), and the linkage between the Liyang government and JZHG, including the appointment of senior management, strategic alignment, supervision of major investment and financing decisions and ongoing operational and financial support. In addition, the Liyang government may face significant negative impact on its reputation and financing activities if JZHG encounters any operational and financial difficulties.

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