This report does not constitute a rating action. ALAC--Additional loss-absorbing capacity. CRA--Comparable ratings analysis. GRE--Government-related entity. ICR--Issuer credit rating. SACP--Stand-alone credit profile. Overview Key strengths Key risks Very strong link with the Shandong provincial government. High portion of unhedged or illiquid proprietary investments that could hit performance in a market downturn. Strong capitalization with lower leverage than that of listed peers. Business concentration in Shandong province. The company's appetite for unhedged or illiquid equity investments is higher than peers' and could heighten its exposure to financial or capital risks in unfavorable market movements. Zhongtai's portfolio risk rebalancing remains to be tested, in our view. The company has a Chinese renminbi (RMB) 6 billion fundraising plan, which could beef up its
