Taixing City Investment Development 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 Taixing City Investment Development Group Co., Ltd. (“TCID” or “the company”)

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

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