Taixing Zhongxin Investment 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 Zhongxin Investment Group Co., Ltd. (“TZIG” or “the company”)

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

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