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
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
Chart 3
Related Research And Criteria
Related Criteria
- Rating Government-Related Entities: Methodology And Assumptions, March 25, 2015
Related Research (Rating actions in 2020)
- Beijing Automotive Group And BAIC Motor Ratings Lowered To 'BBB' On Elevated Leverage; Outlook Negative, June 23, 2020
- Beijing Haidian State-Owned Asset Investment Group Downgraded To 'BBB-' On Elevated Debt; Outlook Stable, June 12, 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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