Overview Key strengths Key risks Dominant local government financing vehicle (LGFV) in the economic zone of Yangzhou city in China, as a critical platform for primary land development and infrastructure investment. Very high financial leverage due to high construction spending and on-lending or guarantees to other local state-owned enterprises (SOEs). Strong record of ongoing government support, via capital injections, operating subsidies, and interest subsidies. Weak operating cash flow because of weak profitability from government-mandated infrastructure projects. Extremely high likelihood of receiving extraordinary support from Yangzhou government. Factory rental business could weigh on cash flow due to high capital expenditure (capex) and long payback periods. . The Yangzhou Economic and Technological Development Zone (ETDZ) is the only national-level development zone in
