Shandong Hejian State-owned Capital Investment Co., Ltd. (Surveillance Report)

Lianhe Ratings Global Limited (“Lianhe Global”) has affirmed ‘BBB+’ global scale Long-term Issuer Credit Rating of Shandong Hejian State-owned Capital Investment Co., Ltd. (“SHSCI”); Issuer Rating Outlook Stable.

The Issuer Credit Rating reflects a high possibility that the People’s Government of Heze City (“Heze government”) would provide strong support to SHSCI if needed, in light of its full ownership of SHSCI, SHSCI’s strategic position as the major LIDC participating in land development, infrastructure construction, resettlement housing construction, and urban renewal in Heze City, Shandong Province (“Heze”), as well as the strong linkage between the Heze government and SHSCI, including control of board of directors, management supervision, strategic alignment and ongoing operational and financial support. In addition, the Heze government may face significant negative impact on its reputation, business and financing activities should SHSCI encounter any operational or financial difficulties.

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