Chinese state-owned finance firm goes global to raise funds amid national slowdown
Jilin finance company will be the northeast’s first government-backed entity to raise funds abroad
One of China’s state-owned finance firms is looking global amid the country’s economic slowdown, planning to raise funds abroad and engage foreign partners as it improves corporate governance and beefs up risk control.
Changchun Urban Development Investment Holding (Group) was given a BAA1 rating by Moody’s and a BBB+ by Fitch Ratings. Both credit rating agencies saw the company as having a stable outlook.
The company was set up by combining state assets in Changchun, capital city of northeastern Jilin province.
Changchun Urban Development is one of thousands of local-government-backed financing vehicles – state-owned entities that raise funds for local governments to finance costly infrastructure and public facility works.
While the firm will be China’s fourth such vehicle to issue debt overseas – after the Qingdao City Construction Investment Group, Beijing Infrastructure Investment and Zhuhai Da Hengqin Investment – it will be the first in the northeast region to do so.
“Changchun Urban Development will extend business coverage overseas. We are prepared against the impact of the United States Federal Reserve’s interest rate hike, while we don’t rule out the possibility of issuing foreign debt in the short term,” its CEO Gao Feng said.