Yichang Hi-tech Industry Investment Holding Group (YHIIHG) successfully obtained 18-year loan of 1.45 billion yuan credited by Agricultural Development Bank of China (ADBC) for shanty-area renovation last November. The shanty-area renovation loan issued by ADBC is the largest one nationwide, and refreshes the records in the scale of a single loan. On 1st December, Ministry of Housing and Urban-Rural Development and the headquarters of ADBC jointly held conference in Yichang to introduce the typical experience of YHIIHG throughout the country.

Developing from small to large and strong, YHIIHG has become the mainstay of mega-city construction. According to Huang Zhihua, the party secretary and president of YHIIHG, led by diversified financing, guided by the principles of “resource capitalization”, “asset capitalization” and “security capitalization”, the group insists common development of direct and indirect financing, and focuses on improving government’s investment and financing capability, and resolves the fund problems in urban construction and industry development of Yichang.

YHIIHG commits itself in expanding the capital scale and achieving big enhancement of credit rating to enhance its strength. By 30th November, the asset was 10.579 billion yuan which was 264.48% of the annual goal, and total net asset was 5.419 billion yuan which was 1083% of the founding date and realized the value maintenance and increase of state capital. The annual cumulative absorbed fund was 6.35 billion yuan which is 317.5% of the annual objective. In 2015, the credit ratings of the group’s main body and its bonds were rated AA level by domestic authorized agency. The operation capability and credit ratings are recognized and accepted by public market. In addition, YHIIHG cooperates with dozens of banks closely including ADBC, ICBC, CITIC Bank, and Hubei Bank, deepening the collaboration between banks and enterprises.

At present, multiple transactions of YHIIHG have refreshed the records of financing in Yichang. YHIIHG has obtained 6-year loan of one billion financial leasing loans by its credit. This is the first financial leasing loans whose subject matter is the urban pipe network of infrastructure. The measure not only activates the state capital of pipe network, but also optimizes the debt structure and improves the efficiency of fund utilization. At the same time, YHIIHG cooperates with banks and brokerages and has declared 2 billion PPN (private placement note) transactions.

Oriented by the market and accelerating the deployment of investment strategy, YHIIHG highlights the rise of the mega-city. YHIIHG has been constantly seizing opportunities in the market and expanding its business range, and the pattern of industrial investment is forming.  YHIIHG actively took the shares of profitable companies such as Hubei Provincial Hi-tech Industry Investment Co., Ltd and Three Gorges Rural Commercial Bank, and has gained equity dividends. YHIIHG actively cooperated with China Yangtze Power to form Three Gorges Power (Yichang) Co., Ltd with 49% shares. YHIIHG also sought cooperation with large state-owned enterprises. It formed Yichang Hi-tech Landscaping Co., Ltd with Gezhouba Landscaping Company with 51% shares. YHIIHG also set up Yichang Hi-tech industry start-up investment fund to provide capital for hi-tech industry in Yichang. In 2015, YHIIHG renovated the project construction and implemented 72 projects with the total investment of 5.85 billion yuan, an increase of 128.86% year-over-year. (Journalist Zheng Guanghua, correspondent Gong Haitao)