Jilin Province’s SOE Reform Achieved a Substantial Breakthrough
Recently, Jilin Province Jisheng Asset Management Co., Ltd., after the comprehensive analysis and assessment by the domestic authoritative rating agency CCXI, obtained the AAA-grade main credit rating and stable outlook. Since then, Jisheng has become the province's first province-affiliated company obtaining the highest AAA-grade main credit rating, filling the blank that the province has no province-affiliated state-owned company obtaining the AAA-grade main credit rating.
Jisheng is an important platform to serve the province’s new round of state-owned enterprise reform and government investment and financing system reform. Although established for only half a year, Jisheng is given a high hope by the provincial government to play an important role in the future state-owned enterprise reform. Governor Liu Guozhong in this year's government work report clearly pointed out “play the role of four state-owned investment operation companies including Jisheng to enlarge the state-owned capital effect." Obtaining the AAA-grade main credit rating marks Jisheng has initially had the pre-condition of enlarging the state-owned capital effect. Up to now, Jigao Group, Jilin Province Water Investment Group and other companies have completed the transfer of property rights, the state-owned resources’ allocation work has been initially completed, and the company has managed assets of more than RMB 170 billion and is the largest province-affiliated non-financial enterprise by assets scale.
The grade of credit rating is a symbol of the overall strength of an enterprise and the AAA-grade credit rating is currently the highest main rating level. Taking the credit rating work as the starting point and boosting the province’s state-owned enterprises to continue to reform and develop in depth is one of highlights of this round of the state-owned enterprise work in Jilin Province. Jisheng preparation group leader Gao Feng said the company focuses on the credit rating work based on the following three reasons rather than eager to carry out the financing business. First, this is conducive to enhancing the confidence of financial institutions and will lay a foundation for Jisheng to obtain a license of by-batch disposal of non-performing financial assets and accelerate the province’s bond-to-stock work. Second, this is aimed to remind and restrain the enterprise to strengthen management to maintain the credit rating through the rating agency's external "examination". Third, this can indirectly enhance the province’s enterprises’ overall credit level, improve the province's overall credit environment and business environment, and increase the capital market’s investment confidence in the province.
"Since last year, the provincial state-owned assets supervision and administration commission has continued to promote the state-owned assets regulators’ function to change from managing assets to managing capital and started the establishment of four state-owned capital investment operating platforms including Jisheng as a reform pilot. Jisheng obtained the AAA-grade credit rating and the capital market’s recognition, marking this work has made a significant progress”, said the provincial state-owned assets supervision and administration commission deputy director Li Bishu.
CCXI affirmed Jilin Province’s confidence, direction and objective of promoting the state-owned enterprise reform and showed Jilin Province’s determination of conducting the state-owned enterprise reform especially in innovating in systems and mechanisms and integrating state-owned resources. "Jisheng started to pay attention to the credit rating work from the beginning of establishment, reflecting the company's understanding, high concern and respect to the capital market rules and showing the company's strategic layout is forward-looking,” said a person in charge of CCXI.
After obtaining the AAA-grade credit rating, Jisheng has initially had the ability of escorting deepening reforms, the ability of guaranteeing the public service and product supply, the ability of sustainable investment and financing of major projects and the risk prevention and control ability of relieving periodical factors and is bound to make new and greater contributions for the province's economy to develop faster and better.