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China GRE Rating List

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China GRE Rating List

As of June 30, 2020, S&P Global Ratings rates 90 government-related entities (GREs) in China. These include GREs held by the Chinese central government as well as local and regional governments.

Based on our criteria (see "Rating Government-Related Entities: Methodology And Assumptions," published on March 25, 2015), we consider an entity to be a GRE, if (i) we believe the entity could, in the event of stress, benefit from extraordinary government support, which could enhance the entity's capacity and willingness to meet its financial commitments as they come due, or (ii) we believe an entity controlled by a government could be subject to negative extraordinary government intervention if that government is under stress.

S&P Global Ratings' general analytical approach to rating GREs is to consider their credit quality as falling between the inclusive bounds formed by the GRE's stand-alone credit profile (SACP) and the government's rating. The GRE rating is based on an analysis of the following elements:

  • The GRE's SACP, which represents the GRE's credit quality in the absence of extraordinary support or intervention;
  • The local currency issue credit rating on the relevant government, which reflects the government's ability to support (or, in a negative scenario, its need to avail itself of the resources of) the GRE; and
  • Our opinion of the likelihood of sufficient and timely extraordinary government intervention in support of the GRE's meeting its financial obligations, as derived from our assessment of the importance of the GRE's role to the government as well as the link between the two.

Table 1

Non-financial Corporate GRE List
Ratings and outlook SACP Uplift from SACP Related government Role Link Likelihood of support Industry

Beijing Automotive Group Co. Ltd.

BBB/Negative/-- bb- 4 Beijing Very important Very strong Very high Automotive

Beijing Capital Group Co. Ltd.

BBB-/Negative/-- bb- 3 Beijing Important Very strong High Real estate developer

Beijing Haidian State-Owned Asset Investment Group Co. Ltd.

BBB-/Stable/-- b- 6 Haidian Critical Very strong Extremely high Chemicals

Beijing State-Owned Assets Management Co. Ltd.

A/Stable/-- bb+ 5 Beijing Critical Very strong Extremely high Investment holding company

Beijing State-owned Capital Operation and Management Center

A+/Stable/-- bbb 4 Beijing Critical Integral Almost certain Investment holding company

Bright Food (Group) Co. Ltd.

BBB/Stable/-- bb 3 Shanghai Important Very strong High Consumer products

China Baowu Steel Group Corp. Ltd.

A-/Stable/-- bbb 2 PRC Important Very strong High Metals & mining

China FAW Group Co. Ltd.

A/Negative/-- bbb+ 2 PRC Important Very strong High Automotive

China Minmetals Corp.

BBB+/Stable/-- bb+ 3 PRC Important Very strong High Metals & mining

China Mobile Ltd.

A+/Stable/-- aa Capped by sovereign rating PRC Very important Very strong Very high Telecommunication

China National Chemical Corp. Ltd.

BBB/Negative/-- bb 3 PRC Important Very strong High Chemicals

China National Gold Group Co. Ltd.

BBB/Stable/-- bb 3 PRC Important Very strong High Metals & mining

China National Offshore Oil Corp.

A+/Stable/-- a 1 PRC Critical Very strong Extremely high Oil & gas

China National Petroleum Corp.

A+/Stable/-- aa- Capped by sovereign rating PRC Critical Very strong Extremely high Oil & gas

China National Travel Service Group Corp. Ltd.

A-/Negative/-- bbb 2 PRC Important Very strong High Media, entertainment & leisure

China Petrochemical Corp.

A+/Stable/A-1 a 1 PRC Critical Very strong Extremely high Oil & gas

China Petroleum & Chemical Corp.

A+/Stable/-- a+ 0 PRC Critical Very strong Extremely high Oil & gas

China Railway Construction Corp. Ltd.

A-/Stable/-- bbb 2 PRC Important Very strong High Engineering & construction

China Railway Group Ltd.

BBB+/Stable/-- bbb- 2 PRC Important Very strong High Engineering & construction

China State Construction Engineering Corp. Ltd.

A/Stable/-- bbb+ 2 PRC Important Very strong High Engineering & construction

CITIC Group Corp.

BBB+/Stable/A-2 bb 4 PRC Very important Very strong Very High Conglomorates

CNOOC Ltd.

A+/Stable/-- a 1 PRC Critical Very strong Extremely high Oil & gas

CRRC Corp. Ltd.

A+/Stable/-- a 1 PRC Very important Very strong Very High Capital goods

Greenland Holding Group Co. Ltd.

BB/Positive/-- bb 0 Shanghai Very important Limited Low Real estate developer

Guangdong Hengjian Investment Holding Co. Ltd.

A/Stable/-- bb+ 5 Guangdong Critical Very strong Extremely high Investment holding company

Jinjiang International Holding Co. Ltd.

BBB/Negative/-- bb 3 Shanghai Important Very strong High Media, entertainment & leisure

Power Construction Corp. of China

BBB+/Negative/-- bb+ 3 PRC Important Very strong High Engineering & construction

Shandong Energy Group Co. Ltd.

BB/Stable/-- b 3 Shandong Important Very strong High Metals & mining

Shandong Gold Group Co. Ltd.

BBB-/Stable/-- bb 2 Shandong Important Very strong High Metals & mining

Shanghai Construction Group Co. Ltd.

BBB/Stable/-- bb+ 2 Shanghai Very important Very strong Moderately high Engineering & construction

Shanghai Electric (Group) Corp.

A/Negative/-- bbb 3 Shanghai Very important Very strong Very high Capital goods

Shanghai Huayi (Group) Co.

BBB/Stable/-- bb+ 2 Shanghai Limited importance Very strong Moderately high Chemicals

Shenzhen Investment Holdings Co. Ltd.

A/Stable/-- bbb 3 Shenzhen Very important Very strong Very high Investment holding company

State Development & Investment Corp.

A/Stable/-- bbb- 4 PRC Critical Very strong Extremely high Investment holding company

Xinjiang Zhongtai (Group) Co. Ltd.

BB+/Negative/-- b 4 Xinjiang Very important Very strong Very high Chemicals

Yankuang Group Co. Ltd.

BB/Stable/-- b 3 Shandong Important Very strong High Metals & mining
PRC--People's Republic of China. SACP--Stand-alone credit profile.

Table 2

Utility And Infrastructure GRE List
Ratings and outlook SACP Uplift from SACP Related government Role Link Likelihood of support Industry

Beijing Environment Sanitation Engineering Group Co. Ltd.

BBB/Stable/-- bb 3 Beijing Important Very strong High Utility

Beijing Infrastructure Investment Co. Ltd.

A+/Stable/-- bb- 8 Beijing Critical Integral Almost certain Transportation

China General Nuclear Power Corp.

A-/Stable/-- bb+ 4 PRC Very important Very strong Very high Utility

China Huadian Corp. Ltd.

A-/Stable/-- bb+ 4 PRC Very important Very strong Very high Utility

China Huaneng Group Co.Ltd.

A-/Stable/-- bb+ 4 PRC Very important Very strong Very high Utility

China Longyuan Power Group Corp. Ltd.

A-/Stable/-- bbb- 3 PRC Very important Very strong Very high Utility

China Southern Power Grid Co. Ltd.

A+/Negative/-- a 1 PRC Critical Very strong Extremely high Utility

China Three Gorges Corp.

A/Stable/-- bbb+ 2 PRC Critical Very strong Extremely high Utility

Chongqing Nan'an Urban Construction & Development (Group) Co. Ltd.

BBB/Negative/-- b 6 Nan'an Critical Integral Almost certain Infrastructure

Gansu Provincial Highway Aviation Tourism Investment Group Co. Ltd.

BBB/Stable/-- bb- 4 Gansu Critical Integral Almost certain Transportation
Guangdong Energy Group Co. Ltd. A-/Stable/-- bbb- 3 Guangdong Very important Very strong Very high Utility

Guangxi Liuzhou Dongcheng Investment & Development Group Co. Ltd

BB/Negative/-- b- 4 Liuzhou Very important Integral Extremely high Infrastructure

Nanjing Yangzi State-Owned Assets Investment Group Co. Ltd.

BBB+/Stable/-- b 7 Nanjing Very important Integral Extremely high Infrastructure

Qingdao Conson Development (Group) Co. Ltd.

BBB/Stable/-- b 6 Qingdao Very important Integral Extremely high Infrastructure

Shanghai International Port (Group) Co. Ltd.

A+/Stable/-- a+ 0 Shanghai Very important Strong High Transportation

Shanghai Lingang Economic Development (Group) Co. Ltd.

BBB+/Stable/-- b+ 6 Shanghai Very important Integral Extremely high Infrastructure

Shenergy (Group) Co. Ltd.

A/Stable/-- a- 1 Shanghai Very important Very strong Very High Utility

Shenzhen International Holdings Ltd.

BBB/Stable/-- bb+ 2 Shenzhen Important Strong Moderately high Transportation

State Grid Corp. of China

A+/Stable/-- a+ 0 PRC Critical Very strong Extremely high Utility

State Power Investment Corp. Ltd.

A-/Stable/-- bb+ 4 PRC Very important Very strong Very high Utility

Yangzhou Economic and Technological Development Zone Development Corp.

BB+/Negative/-- b- 5 Yanzhou Very important Integral Extremely high Infrastructure

Yangzhou Urban Construction State-owned Assets Holding (Group) Co. Ltd.

BBB-/Negative/-- b+ 4 Yanzhou Critical Integral Almost certain Infrastructure
SACP--Stand-alone credit profile. PRC--People's Republic of China.

Table 3

Financial Institution And Insurance GRE List
Ratings and outlook SACP Uplift from SACP Related government Role Link Likelihood of support Industry

Agricultural Bank of China Ltd.

A/Stable/A-1 bbb+ 2 PRC Critical Very strong Extremely high Bank

Agricultural Development Bank of China

A+/Stable/A-1 NA NA PRC Critical Integral Almost certain Bank

Bank of China Ltd.

A/Stable/A-1 a- 1 PRC Critical Very strong Extremely high Bank

Bank of Chongqing Co. Ltd.

BBB-/Stable/A-3 bb+ 1 Chongqing Important Strong Moderately high Bank

Bank of Communications Co. Ltd.

A-/Stable/A-2 bbb- 3 PRC Very important Very strong Very high Bank

China Cinda Asset Management Co. Ltd.

A-/Stable/A-2 bb+ 4 PRC Very important Very strong Very high NBFI

China Construction Bank Corp.

A/Stable/A-1 bbb+ 2 PRC Critical Very strong Extremely high Bank

China Development Bank

A+/Stable/A-1 NA NA PRC Critical Integral Almost certain Bank

China Export & Credit Insurance Corp.

A+/Stable/-- NA NA PRC Critical Integral Almost certain NBFI

China Great Wall Asset Management Co. Ltd.

A-/Stable/A-2 bb+ 4 PRC Very important Very strong Very high NBFI

China Huarong Asset Management Co. Ltd.

BBB+/Stable/A-2 bb 4 PRC Very important Very strong Very high NBFI

China International Capital Corp. Ltd.

BBB/Stable/A-2 bbb- 1 PRC Important Strong Moderately high NBFI

China Jianyin Investment Ltd.

A/Stable/A-1 bb+ 5 PRC Very important Integral Extremely high NBFI

China Life Insurance Co. Ltd.

A+/Stable/-- a 1 PRC Very Important Very strong Very high Insurance

China Orient Asset Management Co. Ltd.

BBB+/Stable/A-2 bb 4 PRC Very important Very strong Very high NBFI

China Reinsurance (Group) Corp.

A/Stable/-- a- 1 PRC Important Very strong High Insurance

China Taiping Insurance Group (HK) Co. Ltd.

BBB+/Stable/A-2 NA NA PRC Important Very strong High Insurance

CITIC Securities Co. Ltd.

BBB+/Stable/A-2 bbb 1 PRC Important Limited Moderate NBFI

Export-Import Bank of China (The)

A+/Stable/A-1 NA NA PRC Critical Integral Almost certain Bank

Guangzhou Finance Holdings Group Co. Ltd.

BBB+/Stable/A-2 bb 4 Guangzhou Very important Integral Extremely high NBFI

Guangzhou Industrial Investment Fund Management Co. Ltd.

BBB/Stable/A-2 bb 3 Guangzhou Very important Very strong Very high NBFI

Guotai Junan Securities Co. Ltd.

BBB+/Stable/A-2 bbb 1 Shanghai Limited importance Very strong Moderately high NBFI

Haitong Securities Co. Ltd.

BBB/Stable/A-2 bbb- 1 Shanghai Limited importance Strong Moderate NBFI

Hangzhou Finance And Investment Group Co. Ltd.

BBB/Stable/A-2 bb- 4 Hangzhou Very important Very strong Very high NBFI
Hua Xia Bank Co. Ltd. BBB-/Stable/A-3 bb 2 Beijing Important Strong Moderately high Bank

Huatai Securities Co. Ltd.

BBB/Positive/A-2 bbb- 1 Jiangsu Limited importance Very strong Moderately high NBFI

Industrial and Commercial Bank of China Ltd.

A/Stable/A-1 bbb+ 2 PRC Critical Very strong Extremely high Bank

Orient Securities Co. Ltd.

BBB-/Stable/A-3 bb+ 1 Shanghai Limited importance Strong Moderate NBFI

Postal Savings Bank of China Co. Ltd.

A/Stable/A-1 bbb 3 PRC Critical Very strong Extremely high Bank

Shanghai Pudong Development Bank Co. Ltd.

BBB/Stable/A-2 bb 3 Shanghai Important Very strong High Bank

Shanghai Rural Commercial Bank Co. Ltd.

BBB/Stable/A-2 bb+ 2 Shanghai Important Strong Moderately high Bank

Zhongrong International Trust Co. Ltd.

BB+/Stable/B bb 1 PRC Important Limited Moderate NBFI
SACP--Stand-alone credit profile. ICR--Issuer credit rating. NBFI--Nonbank financial institution. PRC--People's Republic of China. NA--Not applicable.

Among the China GREs we rate, 47 are owned by the central government and 43 by local and regional governments. Among the central GREs, 74% are in the 'A' rating category whereas around 64% of the local GREs are in the 'BBB' rating category. Central GREs benefit from a higher likelihood of support with higher China sovereign credit rating (A+/Stable/A-1) than local GREs. We assigned very high or above likelihood of extraordinary government support to 70% of our rated central government-owned GREs and 51% of the local government-owned GREs.

Chart 1

image

Our outlooks on the ratings on GREs reflect our view of stability; 83% have stable outlook. Only 15%, or 14 entities, have negative outlooks. In four such cases, this is due to our expectation that the creditworthiness of the respective parent governments will deteriorate over the next 12-24 months. These four entities are: Chongqing Nan'an Urban Construction & Development (Group) Co. Ltd., Guangxi Liuzhou Dongcheng Investment & Development Group Co. Ltd., Yangzhou Economic and Technological Development Zone Development Corp., and Yangzhou Urban Construction State-owned Assets Holding (Group) Co. Ltd. The remaining 10 negative rating outlooks are driven by deteriorating stand-alone credit profiles. Entities with negative rating outlooks are mainly in the industrial (automotive, engineering & construction, capital goods), chemicals, media entertainment & leisure, and infrastructure industries.

Chart 2

image

Chart 3

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Related Research And Criteria

Related Criteria
Related Research (Rating actions in 2020)

This report does not constitute a rating action.

Primary Credit Analysts:Susan Chu, Hong Kong (852) 2912-3055;
susan.chu@spglobal.com
Crystal Wong, Hong Kong (852) 2533-3504;
crystal.wong@spglobal.com
Secondary Contacts:Lawrence Lu, CFA, Hong Kong (852) 2533-3517;
lawrence.lu@spglobal.com
Terry Sham, CFA, FRM, Hong Kong (852) 2533-3590;
terry.sham@spglobal.com
Kendrew Fung, Hong Kong (852) 2533-3540;
kendrew.fung@spglobal.com
Phyllis Liu, Hong Kong (852) 2532-8036;
phyllis.liu@spglobal.com
Yutong Zou, Hong Kong + 852 2532 8061;
yutong.zou@spglobal.com

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