Qingdao China Prosperity State-owned Capital Investment Operation Group Co., Ltd. (Initial Issuer Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has assigned ‘A’ global scale Long-term Issuer Credit Rating with Positive Outlook to Qingdao China Prosperity State-owned Capital Investment Operation Group Co., Ltd. (“QCP” or “the company”)

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

The Positive Outlook reflects QCP’s increasing strategic importance in Qingdao and linkage with the Qingdao Municipal Government, and our expectation that the Qingdao Municipal Government will continue to ensure QCP’s stable operation.