As of Dec. 31, 2020, S&P Global Ratings rates 87 government-related entities (GREs) in China. These include GREs controlled by the Chinese central government as well as by local and regional governments (LRGs).
A vast majority of the ratings on Chinese GREs remained unchanged in 2020. Our outlooks on the ratings on these entities also reflect our view of stability in the portfolio: 85% of the GREs have a stable outlook. Only 13%, or 11 entities, have negative outlooks. In four cases, the negative outlook is due to our expectation that the creditworthiness of the respective governments could deteriorate over the next 12-24 months. The remaining seven negative rating outlooks are driven by deteriorating stand-alone credit profiles (SACPs). Entities with negative rating outlooks are mainly in the industrial (automotive, engineering and construction, and capital goods), chemicals, real estate, infrastructure, and non-bank financial institution (NBFI) segments.
Chart 1
The rated Chinese GREs with negative outlook are:
- Beijing Automotive Group Co. Ltd.
- Beijing Capital Group Co. Ltd.
- Beijing Haidian State-Owned Asset Investment Group Co. Ltd.
- Power Construction Corp. of China
- Shanghai Electric (Group) Corp.
- China Southern Power Grid Co. Ltd.
- 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.
- Guangzhou Finance Holdings Group Co. Ltd.
- Orient Securities Co. Ltd.
The rated Chinese GREs with positive outlook are:
- Greenland Holding Group Co. Ltd.
- Huatai Securities Co. Ltd.
In 2020, we took rating actions on 11 of the 87 GREs in China. Eight of these are LRG-linked GREs and the remaining three are China sovereign-linked GREs. Six of them are from non-financial corporates sectors, mainly from the automotive, chemicals, and travel industries. The rest are infrastructure companies and NBFIs.
All these rating actions were negative--downgrades, revision of outlook to negative, and placement of ratings on CreditWatch with negative implications--and as a result of the impact of the COVID-19 pandemic. We revised the outlook on China Tourism Group Corp. Ltd., China National Chemical Corp. Ltd., and China FAW Group Co. Ltd. to negative when the companies' credit profiles were hit in the first half of 2020 as the COVID-19 outbreak peaked in China. However, we revised the outlook back to stable later in the year as China contained the pandemic and the economy started to recover.
While the rating actions on the six non-financial GREs were driven by their deteriorating SACPs, those on the infrastructure and NBFI credits were related to the weakening financial capability of the related governments, namely Liuzhou City, Guangzhou City, Yangzhou City, and Nan'an District. We expect these local governments to have a worsening budgetary position and higher debt burden because they are facing headwinds from both the economic fallout of the pandemic and of nationwide policies to cut taxes and fees.
We believe more state-owned enterprises (SOE) may default in the next 12-24 months as Chinese authorities refocus on deleveraging SOEs and become increasingly selective in providing support after the pandemic. While governments' willingness to support will likely remain strong for more public policy focused SOEs, they may commercialize some SOE operations and rely less on them for policy investments.
Our evaluation of the likelihood of extraordinary government support for rated GREs remains unchanged. That is because more than 90% of them have a SACP of 'bb-' or above. In our view, commercially minded SOEs that are loss making with little chance of a turnaround have lower odds of timely support. These entities have weaker SACPs. Haitong Securities Co. Ltd., in fact, saw a rise in the likelihood of government support owing to its increased ownership by the Shanghai government.
Table 1
| Rating Actions In 2020--Non-Financial Corporates | ||
|---|---|---|
| Entity [Current rating] | Rating actions in 2020 | Rationale |
| Beijing Automotive Group Co. Ltd. (BAG) [BBB/Negative/--] | April 3: To BBB+/Watch Neg/-- from BBB+/Stable/-- | The CreditWatch placement reflects our view that the slowing Chinese economy, weak prospects for automobile demand, and uncertainty over the duration of the COVID-19 pandemic are weighing on the company's profitability and leverage position. |
| June 23: To BBB/Negative/-- from BBB+/Watch Neg/-- | We downgraded BAG since its financial leverage is unlikely to improve materially over 2020-2021, having deteriorated due to a debt-funded acquisition in 2019. Weaker demand and uncertain recovery prospects amid the COVID-19 fallout will weigh on the Chinese automaker's financial metrics. | |
| Jinjiang International Holding Co. Ltd. [BBB-/Stable/--] | March 23: To BBB/Watch Neg/-- from BBB/Stable/-- | The CreditWatch placement reflects our view that Jinjiang's revenue per available room and occupancy rate will sharply decline in 2020 due to the COVID-19 pandemic both within China and overseas. The timing or pace of the recovery for Jinjiang's hotel occupancy is still uncertain after a severe hit first in China and more recently in Europe. |
| June 16: To BBB/Negative/-- from BBB/Watch Neg/-- | The negative outlook on Jinjiang over the next 12 months indicates a high level of uncertainty around the degree of travel rebound amid the ongoing pandemic, resulting in a slower recovery. We anticipate the travel slump brought on by the COVID-19 pandemic will drive Jinjiang's revenue down in 2020, pushing its leverage significantly higher. | |
| Oct. 12: To BBB-/Stable/-- from BBB/Negative/-- | The downgrade reflects our expectation that the COVID-19 related travel slump will impact Jinjiang more substantially, especially for the company's overseas operations. We also expect Jinjiang to face challenges in cost cutting due to fixed-costs from its large self-owned and leased hotel portfolio, resulting in elevated leverage lasting into 2021 before a more meaningful recovery is possible in 2022. | |
| Beijing Haidian State-Owned Asset Investment Group Co. Ltd. (Haidian SAIG) [BBB-/Negative/--] | June 12: To BBB-/Stable/-- from BBB/Stable/-- | The downgrade reflects our view that Haidian SAIG's financial leverage will remain very high in the next 12-24 months due to its weak operating cash flow and persistent high total debt. We also see weakened liquidity due to significant short-term debt maturities and negative funds from operations. |
| Aug. 19: To BBB-/Negative/-- from BBB-/Stable/-- | We revised our outlook to negative because Haidian SAIG's liquidity remains tight, despite recent improvements, and further progress relies on future asset disposal plans. We continue to see an extremely high likelihood that Haidian SAIG will receive extraordinary support from the Haidian district government in the event of financial distress. | |
| China FAW Group Co. Ltd. [A/Stable/--] | April 3: To A/Negative/-- from A/Stable/-- | The outlook revision reflects our view that FAW Group will face profitability strain over the next 12-24 months, given the weak prospects for automobile demand amid slowing economic growth. We believe unfavorable industry conditions will weigh on FAW Group's profitability over the next 12 months and reduce its rating buffer. |
| Nov. 6: To A/Stable/-- from A/Negative/-- | We revised the outlook on FAW Group to stable after the company's performance exceeded our expectations for the first nine months of 2020. We believe a combination of FAW Group's outperformance and continued market recovery will help the company maintain largely stable profitability and low leverage in 2020-2021. | |
| China National Chemical Corp. Ltd. (ChemChina) [BBB/Stable/--] | March 20: To BBB/Negative/-- from BBB/Stable/-- | The negative outlook reflects our view that the COVID-19 outbreak and related oil price plunge will test the resilience of the credit quality of ChemChina. The risk is toward the downside as the duration and full effects of events are uncertain. |
| Nov. 12: To BBB/Stable/-- from BBB/Negative/-- | We revised outlook to stable because we project EBITDA interest coverage for ChemChina will recover in two years as we expect its energy, chemical, and agriculture businesses to strengthen. Lower interest rates will also stabilize ChemChina's financing costs. | |
| China Tourism Group Corp. Ltd. (CTG) [A-/Stable/--] | April 27: To A-/Negative/-- from A-/Stable/-- | We revised the outlook on CTG to negative to reflect the significant impact of the COVID-19 pandemic on the company's duty-free retail operations, and the uncertainty surrounding a recovery. |
| Sept. 15: To A-/Stable/-- from A-/Negative/-- | We revised the outlook on CTG to stable based on the company's faster recovery than we expected, with domestic travel back to near normal in China and strong online sales. | |
Table 2
| Rating Actions In 2020--Infrastructure | ||
|---|---|---|
| Entity [Current rating] | Rating actions in 2020 | Rationale |
| Guangxi Liuzhou Dongcheng Investment & Development Group Co. Ltd. (LZDC) [BB/Negative/--] | April 28: To BB/Negative/-- from BB/Stable/-- | Our outlook revision reflects growing uncertainty over the Liuzhou municipal government's budgetary performance and very high debt burden following the COVID-19 pandemic. Liuzhou's fast growing but concentrated auto-dominated economic base constrains its creditworthiness. Meanwhile, the government's investment-driven growth model has pushed up debt. LZDC is wholly owned by Liuzhou State-Owned Assets Supervision and Administration Commission on behalf of the Liuzhou municipal government. |
| Yangzhou Economic and Technological Development Zone Development Corp. (YETDZ Dev. Corp.) [BB+/Negative/--] | April 24: To BB+/Negative/-- from BB+/Stable/-- | We revised the outlook because we believe the Yangzhou municipal government's own financial capability is weakening. This is based on our view that the city's fiscal revenues are facing headwinds from both the economic fallout of the pandemic and nationwide policies to cut taxes and fees, which--combined with the city's continued increase in infrastructure spending--will lead to a worsening budgetary position and higher debt burden. YETDZ Dev. Corp. is wholly owned and controlled by the Yangzhou municipal government. |
| Chongqing Nan'an Urban Construction & Development (Group) Co. Ltd. (CQNA) [BBB/Negative/--] | April 1: To BBB/Negative/-- from BBB/Stable/-- | We revised the outlook because we believe Nan'an district in Chongqing, will encounter more uncertainties in fiscal revenue from land sales given the COVID-19 outbreak, combined with the district's high capital spending. The district government has full control of CQNA, with an equity stake of about 85% through Finance Bureau of Nan'an District. |
Table 3
| Rating Actions In 2020--FI And Insurance | ||
|---|---|---|
| Entity [Current rating] | Rating actions in 2020 | Rationale |
| Guangzhou Finance Holdings Group Co. Ltd. (GZFH) [BBB+/Negative/A-2] | July 8: To BBB+/Negative/A-2 from BBB+/Stable/A-2 | The outlook revision reflects the negative credit trend for Guangzhou, which provides extraordinary government support to GZFH. We see an increasing chance that Guangzhou's budgetary performance may not recover by 2022--after a deterioration in 2019 and 2020--as a result of slower revenue growth but continued spending pressure amid the COVID-19 outbreak. We also see strong investment needs for the city under the Great Bay Area initiative. The government's debt burden is therefore likely to remain high over the next two years. |
| Orient Securities Co. Ltd. [BBB-/Negative/A-3] | Nov. 19: To BBB-/Negative/A-3 from BBB-/Stable/A-3 | The revised the outlook to reflect our view that Orient will face heightened risks in the next 12-24 months, predominately driven by the company's higher equity exposure in its investment portfolio. Consequently, we expect Orient's risk-adjusted capital ratio to remain under pressure during the period. |
Based on our criteria (see "Rating Government-Related Entities: Methodology And Assumptions," published 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 its capacity and willingness to meet 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 typically falling between the inclusive bounds formed by the SACP and the government 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 issuer credit rating on the relevant government, which reflects the government's ability to support (or, in a negative scenario, its need to avail the resources of) the GRE; and
- Our opinion of the likelihood of sufficient and timely extraordinary government intervention in support of the GRE's ability to meet its financial obligations. This is derived from our assessment of the importance of the GRE's role to, and link with, the government.
Table 4
| GRE List--Non-Financial Corporates | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Org legal name | Ratings and outlook | SACP | Uplift from SACP | Related government | Role | Link | Likelihood of support | Industry | ||||||||||
|
China Baowu Steel Group Corp. Ltd. |
A-/Stable/-- | bbb | 2 | PRC | Important | Very strong | High | Metals and mining | ||||||||||
|
China FAW Group Co. Ltd. |
A/Stable/-- | bbb+ | 2 | PRC | Important | Very strong | High | Automotive | ||||||||||
|
China Minmetals Corp. |
BBB+/Stable/-- | bb+ | 3 | PRC | Important | Very strong | High | Metals and 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/Stable/-- | bb | 3 | PRC | Important | Very strong | High | Chemicals | ||||||||||
|
China National Gold Group Co. Ltd. |
BBB/Stable/-- | bb | 3 | PRC | Important | Very strong | High | Metals and mining | ||||||||||
|
China National Offshore Oil Corp. |
A+/Stable/-- | a | 1 | PRC | Critical | Very strong | Extremely high | Oil and gas | ||||||||||
|
China National Petroleum Corp. |
A+/Stable/-- | aa- | Capped by sovereign rating | PRC | Critical | Very strong | Extremely high | Oil and gas | ||||||||||
|
China Petrochemical Corp. |
A+/Stable/A-1 | a | 1 | PRC | Critical | Very strong | Extremely high | Oil and gas | ||||||||||
|
China Petroleum & Chemical Corp. |
FC: A+/Stable/-- | a+ | 0 | PRC | Critical | Very strong | Extremely high | Oil and gas | ||||||||||
|
China Railway Construction Corp. Ltd. |
A-/Stable/-- | bbb | 2 | PRC | Important | Very strong | High | Engineering and construction | ||||||||||
|
China Railway Group Ltd. |
BBB+/Stable/-- | bbb- | 2 | PRC | Important | Very strong | High | Engineering and construction | ||||||||||
|
China State Construction Engineering Corp. Ltd. |
A/Stable/-- | bbb+ | 2 | PRC | Important | Very strong | High | Engineering and construction | ||||||||||
|
China Tourism Group Corp. Ltd. |
A-/Stable/-- | bbb | 2 | PRC | Important | Very strong | High | Media, entertainment and leisure | ||||||||||
|
CITIC Group Corp. |
FC: 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 and gas | ||||||||||
|
CRRC Corp. Ltd. |
A+/Stable/-- | a | 1 | PRC | Very important | Very strong | Very high | Capital goods | ||||||||||
|
Power Construction Corp. of China |
BBB+/Negative/-- | bb+ | 3 | PRC | Important | Very strong | High | Engineering and construction | ||||||||||
|
State Development & Investment Corp. |
A/Stable/-- | bbb- | 4 | PRC | Critical | Very strong | Extremely high | Investment holding company | ||||||||||
|
Beijing Automotive Group Co. Ltd. |
BBB/Negative/-- | bb- | 4 | Beijing Municipality | Very important | Very strong | Very high | Automotive | ||||||||||
|
Beijing Capital Group Co. Ltd. |
BBB-/Negative/-- | bb- | 3 | Beijing Municipality | Important | Very strong | High | Real estate developer | ||||||||||
|
Beijing State-Owned Assets Management Co. Ltd. |
A/Stable/-- | bb+ | 5 | Beijing Municipality | Critical | Very strong | Extremely high | Investment holding company | ||||||||||
|
Beijing State-owned Capital Operation and Management Center |
A+/Stable/-- | bbb | 4 | Beijing Municipality | Critical | Integral | Almost certain | Investment holding company | ||||||||||
|
Guangdong Hengjian Investment Holding Co. Ltd. |
A/Stable/-- | bb+ | 5 | Guangdong Province | Critical | Very strong | Extremely high | Investment holding company | ||||||||||
|
Beijing Haidian State-Owned Asset Investment Group Co. Ltd. |
BBB-/Negative/-- | b- | 6 | Haidian District | Critical | Very strong | Extremely high | Chemicals | ||||||||||
|
Shandong Energy Group Co. Ltd.* |
BB/Stable/-- | b | 3 | Shandong Province | Important | Very strong | High | Metals and mining | ||||||||||
|
Shandong Gold Group Co. Ltd. |
BBB-/Stable/-- | bb | 2 | Shandong Province | Important | Very strong | High | Metals and mining | ||||||||||
|
Bright Food (Group) Co. Ltd. |
BBB/Stable/-- | bb | 3 | Shanghai Municipality | Important | Very strong | High | Consumer products | ||||||||||
|
Greenland Holding Group Co. Ltd. |
BB/Positive/-- | bb | 0 | Shanghai Municipality | Limited importance | Limited | Low | Real estate developer | ||||||||||
|
Jinjiang International Holding Co. Ltd. |
BBB-/Stable/-- | bb- | 3 | Shanghai Municipality | Important | Very strong | High | Media, entertainment and leisure | ||||||||||
|
Shanghai Construction Group Co. Ltd. |
BBB/Stable/-- | bb+ | 2 | Shanghai Municipality | Limited importance | Very strong | Moderately high | Engineering and construction | ||||||||||
|
Shanghai Electric (Group) Corp. |
A/Negative/-- | bbb | 3 | Shanghai Municipality | Very important | Very strong | Very high | Capital goods | ||||||||||
|
Shanghai Huayi (Group) Co. |
BBB/Stable/-- | bb+ | 2 | Shanghai Municipality | Limited importance | Very strong | Moderately high | Chemicals | ||||||||||
|
Shenzhen Investment Holdings Co. Ltd. |
A/Stable/-- | bbb | 3 | Shenzhen City | Very important | Very strong | Very high | Investment holding company | ||||||||||
| Ratings as of Dec. 31, 2020. *Combined entity of Shandong Energy Group Co. Ltd. and Yankuang Group Co. Ltd.; the two entities merged in December 2020. GREs--Government-related entities. PRC--People's Republic of China. SACP--Stand-alone credit profile. | ||||||||||||||||||
Table 5
| GRE List--Utilities And Infrastructure | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Org legal name | Ratings and outlook | SACP | Uplift from SACP | Related government | Role | Link | Likelihood of support | Industry | ||||||||||
|
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 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 | ||||||||||
|
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 | ||||||||||
|
Beijing Environment Sanitation Engineering Group Co. Ltd. |
BBB/Stable/-- | bb | 3 | Beijing Municipality | Important | Very strong | High | Utility | ||||||||||
|
Beijing Infrastructure Investment Co. Ltd. |
A+/Stable/-- | bb- | 8 | Beijing Municipality | Critical | Integral | Almost certain | Transportation | ||||||||||
|
Gansu Provincial Highway Aviation Tourism Investment Group Co. Ltd. |
BBB/Stable/-- | bb- | 4 | Gansu Province | Critical | Integral | Almost certain | Transportation | ||||||||||
|
Guangdong Energy Group Co. Ltd. |
A-/Stable/-- | bbb- | 3 | Guangdong Province | Very important | Very strong | Very high | Utility | ||||||||||
|
Guangxi Liuzhou Dongcheng Investment & Development Group Co. Ltd. |
BB/Negative/-- | b- | 4 | Liuzhou City | Very important | Integral | Extremely high | Infrastructure | ||||||||||
|
Chongqing Nan'an Urban Construction & Development (Group) Co. Ltd. |
BBB/Negative/-- | b | 6 | Nan'an District | Critical | Integral | Almost certain | Infrastructure | ||||||||||
|
Nanjing Yangzi State-Owned Assets Investment Group Co. Ltd. |
BBB+/Stable/-- | b | 7 | Nanjing City | Very important | Integral | Extremely high | Infrastructure | ||||||||||
|
Qingdao Conson Development (Group) Co. Ltd. |
BBB/Stable/-- | b | 6 | Qingdao City | Very important | Integral | Extremely high | Infrastructure | ||||||||||
|
Shanghai International Port (Group) Co. Ltd. |
A+/Stable/-- | a+ | 0 | Shanghai Municipality | Very important | Strong | High | Transportation | ||||||||||
|
Shanghai Lingang Economic Development (Group) Co. Ltd. |
BBB+/Stable/-- | b+ | 6 | Shanghai Municipality | Very important | Integral | Extremely high | Infrastructure | ||||||||||
|
Shenergy (Group) Co. Ltd. |
A/Stable/-- | a- | 1 | Shanghai Municipality | Very important | Very strong | Very high | Utility | ||||||||||
|
Shenzhen International Holdings Ltd. |
BBB/Stable/-- | bb+ | 2 | Shenzhen City | Important | Strong | Moderately high | Transportation | ||||||||||
|
Yangzhou Economic and Technological Development Zone Development Corp. |
BB+/Negative/-- | b- | 5 | Yangzhou City | Very important | Integral | Extremely high | Infrastructure | ||||||||||
| Ratings as of Dec. 31, 2020. GREs--Government-related entities. SACP--Stand-alone credit profile. PRC--People's Republic of China. | ||||||||||||||||||
Table 6
| GRE List--Financial Institutions And Insurance | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Org legal name | 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 | N/A | N/A | 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 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 | N/A | N/A | PRC | Critical | Integral | Almost certain | Bank | ||||||||||
|
China Export & Credit Insurance Corp. |
LC: A+/Stable/-- | N/A | N/A | PRC | Critical | Integral | Almost certain | Insurance | ||||||||||
|
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 | a- | 1 | 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 | N/A | N/A | PRC | Critical | Integral | Almost certain | Bank | ||||||||||
|
Industrial and Commercial Bank of China Ltd. |
A/Stable/A-1 | bbb+ | 2 | PRC | Critical | Very strong | Extremely high | Bank | ||||||||||
|
Postal Savings Bank of China Co. Ltd. |
A/Stable/A-1 | bbb | 3 | PRC | Critical | Very strong | Extremely high | Bank | ||||||||||
|
Shenwan Hongyuan Securities Co. Ltd. |
BBB/Stable/A-2 | bbb- | 1 | PRC | Limited importance | Strong | Moderate | NBFI | ||||||||||
|
Zhongrong International Trust Co. Ltd. |
BB+/Stable/B | bb | 1 | PRC | Important | Limited | Moderate | NBFI | ||||||||||
|
Hua Xia Bank Co. Ltd. |
BBB-/Stable/A-3 | bb | 2 | Beijing Municipality | Important | Strong | Moderately high | Bank | ||||||||||
|
Bank of Chongqing Co. Ltd. |
BBB-/Stable/A-3 | bb+ | 1 | Chongqing Municipality | Important | Strong | Moderately high | Bank | ||||||||||
|
Guangzhou Finance Holdings Group Co. Ltd. |
BBB+/Negative/A-2 | bb | 4 | Guangzhou City | Very important | Integral | Extremely high | NBFI | ||||||||||
|
Hangzhou Finance And Investment Group Co. Ltd. |
BBB/Stable/A-2 | bb- | 4 | Hangzhou City | Very Important | Very strong | Very high | NBFI | ||||||||||
|
Huatai Securities Co. Ltd. |
BBB/Positive/A-2 | bbb- | 1 | Jiangsu Province | Limited importance | Very strong | Moderately high | NBFI | ||||||||||
|
Zhongtai Securities Co. Ltd. |
BBB-/Stable/A-3 | bb+ | 1 | Shandong Province | Limited importance | Very strong | Moderately high | NBFI | ||||||||||
|
Guotai Junan Securities Co. Ltd. |
BBB+/Stable/A-2 | bbb | 1 | Shanghai Municipality | Limited importance | Very strong | Moderately high | NBFI | ||||||||||
|
Haitong Securities Co. Ltd. |
BBB/Stable/A-2 | bbb- | 1 | Shanghai Municipality | Limited importance | Very strong | Moderately high | NBFI | ||||||||||
|
Orient Securities Co. Ltd. |
BBB-/Negative/A-3 | bb+ | 1 | Shanghai Municipality | Limited importance | Strong | Moderate | NBFI | ||||||||||
|
Shanghai Pudong Development Bank Co. Ltd. |
BBB/Stable/A-2 | bb | 3 | Shanghai Municipality | Important | Very strong | High | Bank | ||||||||||
|
Shanghai Rural Commercial Bank Co. Ltd. |
BBB/Stable/A-2 | bb+ | 2 | Shanghai Municipality | Important | Strong | Moderately high | Bank | ||||||||||
| * The ICR is 2 notches below the GCP, considering the structural subordination of the holding company's creditors versus the policyholders of its insurance subsidiaries. Ratings as of Dec 31, 2020. GREs--Government-related entities. SACP--Stand-alone credit profile. ICR--Issuer credit rating. NBFI--Nonbank financial institution. PRC--People's Republic of China. N/A--Not applicable. | ||||||||||||||||||
Table 7
Table 8
Chart 2
Chart 3
Related Criteria And Research
Related Criteria
- Rating Government-Related Entities: Methodology And Assumptions, March 25, 2015
Related Research
- Research Update: Yangzhou Economic And Technological Development Zone Development Corp. 'BB+' Rating Affirmed; Outlook Negative, Nov. 30, 2020
- Research Update: Orient Securities Outlook Revised To Negative; 'BBB-/A-3' Ratings Affirmed, Nov. 19, 2020
- Research Update: China National Chemical Corp. Outlook Revised To Stable On Recovering Earnings, Low Financing Costs; Ratings Affirmed, Nov. 12, 2020
- Research Update: China FAW Group Outlook Revised To Stable On Resilient Performance; 'A' Rating Affirmed, Nov. 6, 2020
- Research Update: Jinjiang International Downgraded To 'BBB-' On Protracted Travel Slump; Outlook Stable, Oct. 12, 2020
- Research Update: China Tourism Group And Hong Kong Subsidiary Outlooks Revised To Stable On Fast Recovery; 'A-' Ratings Affirmed, Sept. 15, 2020
- Research Update: Beijing Haidian State-Owned Asset Investment Group Outlook Revised To Negative; 'BBB-' Ratings Affirmed, Aug. 19, 2020
- Research Update: Haitong Securities Co. Ltd. And Haitong International Securities Group Ltd. 'BBB/A-2' Ratings Affirmed; Outlooks Stable, July 31, 2020
- China GRE Rating List, July 13, 2020
- Research Update: Guangzhou Finance Outlook Revised To Negative On City Government's Eroding Creditworthiness; 'BBB+' Rating Affirmed, July 8, 2020
- Research Update: Beijing Automotive Group And BAIC Motor Ratings Lowered To 'BBB' On Elevated Leverage; Outlook Negative, June 23, 2020
- Research Update: Jinjiang International 'BBB' Ratings Affirmed With Negative Outlook On Travel Downturn; Off CreditWatch Negative, June 16, 2020
- Research Update: Beijing Haidian State-Owned Asset Investment Group Downgraded To 'BBB-' On Elevated Debt; Outlook Stable, June 12, 2020
- Research Update: Guangxi Liuzhou Dongcheng Outlook Revised To Negative On Wobbling Government Creditworthiness; 'BB' Rating Affirmed, April 28, 2020
- Research Update: China National Travel Service Group, Hong Kong Subsidiary Outlooks Revised To Negative; 'A-' Ratings Affirmed, April 27, 2020
- Research Update: LGFVs Yangzhou Urban And YETDZ Outlooks Revised To Negative On Weakening Government Financial Capacity; Ratings Affirmed, April 24, 2020
- Research Update: Beijing Automotive Group And BAIC Motor 'BBB+' Ratings Placed On CreditWatch Negative On COVID-19 Uncertainty, April 3, 2020
- Research Update: China FAW Group Co. Ltd. Outlook Revised To Negative On Margin Pressure; 'A' Rating Affirmed, April 3, 2020
- Research Update: Chongqing Nan'an Urban Construction Outlook Revised To Negative; 'BBB' Ratings Affirmed, April 1, 2020
- Research Update: Jinjiang International Placed On CreditWatch Negative On Occupancy And Revenue Decline Related To COVID-19, March 23, 2020
- Research Update: China National Chemical Corp. Ltd. Outlook Revised To Negative On Earnings Weakness; 'BBB' Ratings Affirmed, March 20, 2020
This report does not constitute a rating action.
| Primary Credit Analyst: | Crystal Wong, Hong Kong + 852 2533 3504; crystal.wong@spglobal.com |
| Secondary Contacts: | Susan Chu, Hong Kong (852) 2912-3055; susan.chu@spglobal.com |
| Gloria Lu, CFA, FRM, Hong Kong + 852 2533 3596; gloria.lu@spglobal.com | |
| Chang Li, Beijing + 86 10 6569 2705; chang.li@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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