Bulletin: Yangzhou ETDZ Dev. Group Retains Government Link Despite Ownership Change

HONG KONG (S&P Global Ratings) July 14, 2023--The new ownership structure of Yangzhou Economic and Technological Development Zone Development (Group) Co. Ltd. (YETDZ Dev. Group) will not change its interaction with nor the support it receives from the government. We regard YETDZ Dev. Group's new shareholder, Yangzhou Industrial Investment State-owned Holdings (Group) Co. Ltd. (YIISH), as an intermediate holding company at this stage. We do not expect the ownership transfer to change the Yangzhou municipal government's direct involvement in YETDZ Dev. Group's strategy setting and decision-making processes, senior management appointments, or provision of support. This is because the new parent will have no material operations. Its key role is to act as the shareholder, on behalf of the Yangzhou municipal

...HONG KONG (S&P Global Ratings) July 14, 2023--The new ownership structure of Yangzhou Economic and Technological Development Zone Development (Group) Co. Ltd. (YETDZ Dev. Group) will not change its interaction with nor the support it receives from the government. We regard YETDZ Dev. Group's new shareholder, Yangzhou Industrial Investment State-owned Holdings (Group) Co. Ltd. (YIISH), as an intermediate holding company at this stage. We do not expect the ownership transfer to change the Yangzhou municipal government's direct involvement in YETDZ Dev. Group's strategy setting and decision-making processes, senior management appointments, or provision of support. This is because the new parent will have no material operations. Its key role is to act as the shareholder, on behalf of the Yangzhou municipal government, of two previously directly owned local government financing vehicles (LGFVs)--YETDZ Dev. Group and Yangzhou Slender West Lake Tourism Development Group Co. Ltd. (YSWLDC). We believe...

Bulletin