QPIG- Is it a LGFV or SOE?

Qinghai Provincial Investment Group (“QPIG” or “the company” or in Chinese “青海省投资集团有限公司”) is under the spotlight for missing its interest payment on 22 February 2019. QPIG had a prior incident of nearly missing scheduled payment in 2018. Many media outlets refer QPIG in their reports as an LGFV and subsequentially have started to question Chinese local and central governments’ willingness to support LGFVs. Lianhe Global believes QPIG is an SOE rather than an LGFV. While Lianhe Global does not currently rate QPIG, we are able to reach our assessment on the nature of QPIG based on publicly available information.