Jinhua State-owned Capital Operation Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘A’ global scale Long-term Issuer Credit Rating of Jinhua State-owned Capital Operation Co., Ltd. (“JSCO” or “the company”); Issuer Rating Outlook Stable

The Issuer Credit Rating reflects a high possibility that Jinhua Municipal People’s Government (“the Jinhua government”) would provide strong support to JSCO if needed, in light of its full ownership of JSCO, JSCO’s strategic importance as the flagship local investment and development company (“LIDC”) responsible for urban development and city operation in Zhejiang’s Jinhua City (“Jinhua”), and the linkage between the Jinhua government and JSCO, including the appointment of the senior management, strategic alignment, supervision of major financing plan and investment decisions and ongoing operational and financial support. In addition, the Jinhua government may face significant negative impact on its reputation and financing activities if JSCO encounters any operational and financial difficulties.

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