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On June 26, 2023, CCX Green Finance International Limited (CCX Green Finance International Limited, referred to as "CCX Green Finance International"), a subsidiary of China Chengxin Group, officially entered the list of external review agencies recognized by the Hong Kong Monetary Authority's "Green and Sustainable Finance Funding Scheme", becoming the first Chinese rating agency to obtain this qualification.     the Green and Sustainable Finance Grant Scheme in 2021. The scheme aims to promote green and sustainable bond issuance and lending activities in Hong Kong, and can subsidize the bond issuance expenses and external review service fees of eligible green and sustainable finance bond issuers and borrowers. The scheme has been launched on May 10, 2021 for a period of three years. It is an important measure to further enrich Hong Kong's green and sustainable finance ecology and help expand the market.     As a leading comprehensive credit industry group in China, China Chengxin Group has always maintained a leading position in the fields of green finance and ESG. CCXGF International, adhering to the resource advantages of China Chengxin Group, takes Hong Kong as a bridgehead for the development and innovation of international sustainable finance, and actively participates in the green finance and ESG market business in Hong Kong. It has currently implemented green bond certification, sustainable loan certification, financial institution information disclosure and other businesses. The Hong Kong Monetary Authority's reply is a full recognition of CCXGF International's market influence and technical capabilities. In the future, CCXGF International will vigorously promote green and sustainable financial business in Hong Kong, linking the team strength and service advantages of the mainland to provide customers with professional offshore green and sustainable financial services in Hong Kong.

CCX Heyi Information Technology (Shanghai) Co., Ltd. ("CCX Heyi Technology ") was established in 2016. It is a professional institution under CCX International that provides credit risk information, industry in-depth research, special data services, model development and valuation services for the fixed-income investment and asset securitization investment and financing markets. CCX Heyi Technology currently has a complete range of fixed-income and asset securitization-related data products, model services, technology cloud platforms, and system solution services.

  On June 19, 2024, the Hong Kong Monetary Authority (“HKMA”) approved China Chengxin (Asia Pacific) Credit Rating Co., Ltd. (hereinafter referred to as “Chengxin Asia Pacific”) as the first Chinese credit rating agency approved under the Qualified Debt Note Program (“QDI Program”). The four previously approved rating agencies were all foreign institutions.   The Hong Kong Monetary Authority is the central bank of Hong Kong. It is responsible for maintaining Hong Kong's monetary stability, promoting the stability and integrity of the financial system, consolidating Hong Kong's position as an international financial center, and managing the Exchange Fund. The HKMA is responsible for supervising the banking industry and also bears the important responsibility of promoting the development of Hong Kong's bond market.     The significance of this recognition The Hong Kong Monetary Authority's QDI plan includes Chinese rating agencies in the scope of recognized credit rating agencies for the first time, which is of great and far-reaching significance. It confirms that the international development of Chinese rating agencies has gradually been recognized by overseas markets and regulators, accelerating the internationalization process of Chinese rating agencies, helping to enhance the international competitiveness and voice of Chinese rating agencies, and promoting high-quality financial development and further opening up. At the same time, the addition of new recognized rating agencies will help strengthen the development vitality of the overseas credit rating market and provide market participants with more diversified credit rating information. Chinese rating agencies have natural information advantages and professional strength in the Chinese market, which will help global investors better understand and control the rating logic and credit risks of Chinese issuers.   In October 2023, General Secretary Xi Jinping first proposed "accelerating the construction of a financial power" at the Central Financial Work Conference. As an important infrastructure of the bond market, credit ratings need to adhere to the principle of keeping integrity and innovation, bravely shoulder the mission of the times, and take a development path of the rating industry with Chinese characteristics to contribute to the construction of a financial power. At present, China's economy has been deeply integrated into the world economy. General Secretary Xi Jinping pointed out: "We must expand opening up to the outside world, improve the efficiency and ability of China's financial resource allocation, and enhance international competitiveness and the influence of rules." With the increasing openness of China's financial market, Chinese rating agencies are required to provide internationally recognized rating results to provide a reference for the pricing of financial products in the international market, so as to avoid the loss of pricing power and cause financial market turmoil. At the same time, strengthening the internationalization of Chinese rating agencies will help reconstruct the global financial governance structure, seize the initiative in ratings to maintain the country's financial security, avoid financial systemic risks caused by external unstable factors, and provide a reference for regulatory authorities to manage cross-border risks. In addition, in the context of intensified competition among major powers and increasingly complex external environment, promoting the internationalization of the rating industry will also help to output views that are more in line with the interests of the country, thereby seizing the initiative in ratings and better maintaining the country's financial stability and financial security.   What is the QDI Program? The QDI Scheme is a tax incentive scheme launched by the Hong Kong Government in 1996 to attract overseas bond issuers to issue bonds in Hong Kong and expand the Hong Kong bond market. Under the QDI Scheme, interest income and profits from eligible debt instruments issued on or after April 1, 2018 are exempt from profits tax. Currently, the general tax rate for corporations is 16.5%, and for non-corporates is 15%; under the two-tiered tax rate, the assessable profits of corporations not exceeding HK$2 million are 8.25%, and the part exceeding HK$2 million is 16.5%, and the assessable profits of non-corporates not exceeding HK$2 million are 7.5%, and the part exceeding HK$2 million is 15%. Under the profits tax concession scheme under Section 14A of the Inland Revenue Ordinance, eligible debt instruments must meet the minimum rating requirements given by a credit rating agency recognized by the HKMA.   Credit rating agencies recognised by the HKMA   What are the minimum rating requirements?   There are only five credit rating agencies approved by the Hong Kong Monetary Authority under the QDI program. In addition to CCX Asia Pacific, the other four, including Fitch, Moody's, S&P and Japan R&I, are all foreign institutions. Qualified debt instruments must obtain the lowest rating of the following five rating agencies, such as BBBg -rating for CCX Asia Pacific's long-term debt instruments or Ag-3 rating for short-term debt instruments.     Is this recognition applicable to the HKMA?   Green and sustainable finance funding scheme?   The ratings of CCXAP also apply to the Green and Sustainable Finance Grant Scheme (the “Grant Scheme”) launched by the HKMA in May 2021 , which provides grants to eligible green and sustainable bonds and loans issued in Hong Kong, covering general debt issuance costs and external review fees. Issuers can receive a grant of half of the eligible costs for general debt issuance costs, with a maximum of HK$2.5 million if the bonds are rated by a recognized rating agency. Joint venture costs include listing fees, custody and settlement fees, and other professional service fees including legal advisors, auditors and credit rating agencies. For external review fees, the grant amount is the full amount of eligible costs, with a total grant limit of HK$800,000 for each issuance (including a pre-issuance cap of HK$250,000 and a post-issuance cap of HK$200,000 per year for up to 3 years). On May 3, 2024, the HKMA announced that the Grant Scheme would be extended to 2027 and the scope of the grant would be expanded to transition bonds and loans to further encourage relevant industries in the region to use Hong Kong's transition financing platform to gradually reduce carbon emissions.     CCXAP is a subsidiary of China Chengxin International Credit Rating Co., Ltd. ("CCXI"), the largest rating agency in China and a leader in China's rating industry. CCXAP obtained the Category 10 license (providing credit rating services) issued by the Hong Kong Securities Regulatory Commission in June 2012. It is the first Chinese-funded credit rating agency to obtain the qualification to engage in rating business in overseas markets . As an overseas branch of China Chengxin Group, CCXAP is a window for conveying credit judgments on domestic and foreign enterprises to overseas investors, and has a significant strategic position within the group.

  On the evening of October 29, the 4th "IFF Global Green Finance Awards" (hereinafter referred to as the "Green Gold Awards") award ceremony was held during the 20th Anniversary Global Annual Meeting of the International Financial Forum (IFF). According to the IFF organizing committee, after a rigorous selection process, 10 units won the "Annual Award", 10 projects won the "Innovation Award", and 3 companies won the "Growth Award". CCXGF Technology (Beijing) Co., Ltd. ( " CCXGF " ) won the "Growth Award". Shen Shuangbo, President of CCXGF, was invited to attend the award ceremony.     The evaluation of this year's Green Gold Award paid more attention to the use of financial means to promote green development, and attracted more representatives of industry organizations to participate. At the same time, the evaluation process emphasized the encouragement of innovation and actual results, and distinguished between for-profit and non-profit organizations and projects. It is worth noting that this year's IFF Global Green Finance Award also added a "Growth Award" for start-ups and small and medium-sized enterprises at the forefront of development, especially those that have achieved outstanding originality, leadership and exploration in the field of green development.     According to reports, the participating institutions of this year's Green Gold Award are mainly well-known domestic and foreign institutions and industry leaders, with many representative cases such as the first and largest global industry cases. The overall strength has been further enhanced, and the diversity of regions, industries, and innovative practices has become more prominent. In addition, the number of international institutions and projects entering the review stage is far more than in previous years, and new participating institutions from the Middle East and Southeast Asia have been added. The types of participating institutions are more diversified. In addition to financial and capital market infrastructure institutions such as banks, securities companies, funds, insurance, asset management, guarantees, indexes, and inclusive finance, there are also international organizations, international industry associations, Fortune 500 companies, listed companies at home and abroad, and central enterprise groups . The scope of participating institutions has also expanded to science and technology manufacturing, the Internet, new energy, real estate and other industries.     China Chengxin Green Finance is a professional institution under China Chengxin International Credit Rating Co., Ltd. that focuses on sustainable financial services. As the earliest third-party service institution to participate in the construction of China's green financial system, China Chengxin Green Finance has been deeply involved in the field of sustainable finance and is committed to providing professional and independent sustainable financial assessment and consulting services. China Chengxin Green Finance is headquartered in Beijing and has branches in Guangzhou and other places.   As a professional green finance service organization, China Chengxin Green Finance focuses on research and practice in the field of green finance, and provides comprehensive green financial services to market entities such as local governments, enterprises, and financial institutions. China Chengxin Green Finance has a complete green bond database, listed companies and bond issuers ESG database, and is in a leading position in the market in terms of regional green financial system construction, green banking services, green assessment, and ESG services.

China Chengxin Green Finance International Co., Ltd. (CCXGFI) has evaluated Suzhou New District Hi-Tech Industrial Co., Ltd.’s Sustainable Finance Framework and confirmed that it aligns with the Green Bond Principles 2021’ (including June 2022 Appendix 1), ‘Social Bond Principles 2023’, ‘Sustainability Bond Guidelines 2021', ‘Green Loan Principles 2023' and ‘Social Loan Principles 2023’. CCXGFI believes that the four core elements involved in this financing framework are highly aligned with the requirements of these standards, significantly increasing the likelihood of achieving environmental and social benefits.   The Issuer's Sustainable Finance Framework will be used to guide the company in issuing green, sustainable, and social responsibility bonds and loans. The use of funds under this framework includes categories such as green buildings, energy efficiency improvement, circular economy products and technologies, certified eco-efficient products, sustainable water and wastewater management, and sustainable management of biological and land resources. In the social responsibility project category, it includes affordable basic infrastructure and job creation.   Founded in 1990, Suzhou New District Hi-Tech Industrial is a key state-owned enterprise directly under the Suzhou New District Administrative Committee. The company focuses on three main business areas: urban construction, urban services, and industrial parks, while also developing financial services and strategic emerging industries, with a commitment to becoming a leader in emerging industry development and urban development operations.

China Chengxin Green Finance International (CCXGFI) recently provided climate risk stress testing services for a major Chinese commercial bank based in Hong Kong. By conducting quantitative analysis and stress testing for both transition risks and physical risks, CCXGFI helped the bank thoroughly assess the potential financial losses caused by climate change, ultimately improving its profitability and market competitiveness. The entire process was carried out strictly according to requirements of the Hong Kong Monetary Authority (HKMA), after which the standardized testing approach was customized to reflect the bank’s specific operational context.   This service not only sets a benchmark for Chinese banks in Hong Kong on meeting climate risk management standards but also contributes to strengthening the broader community's ability to anticipate and respond to climate-related disasters. Furthermore, it promotes greater recognition and support for sustainable development across various sectors in Hong Kong.

Ganzhou Urban Investment Group Co., Ltd. (Ganzhou Urban Investment Group) is set to issue 3-year USD sustainable bonds on the Hong Kong Stock Exchange on September 4, 2024, with an initial guidance rate of 6.60%. China Chengxin Green Finance International Co., Ltd. (CCXGFI), a recognized external reviewer under the Hong Kong Monetary Authority's Green and Sustainable Finance Grant Scheme with relevant expertise and qualifications, has been appointed by the Group to provide a second-party opinion on its Sustainable Finance Framework.   Ganzhou Urban Investment Group has established such framework to carry out green, sustainable, and social financing transactions, integrating the concept of sustainability into all aspects of its business strategy, including investment, construction, and operations.   Following the review by CCXGFI's Sustainable Development Evaluation Committee, CCXGFI has assigned the Sustainable Finance Framework of Ganzhou Urban Investment Group an Sf-2 rating. The rating confirms that the four core components of the company's framework align with the relevant requirements of the Green Bond Principles (2021), Social Bond Principles (2023), and Sustainability Bond Guidelines (2021) issued by the International Capital Market Association, as well as the Green Loan Principles (2023) and Social Loan Principles (2023) published by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndications and Trading Association. The framework demonstrates a strong alignment with the company’s sustainability strategy, a high likelihood of achieving the stated environmental and/or social objectives, and effective environmental and/or social risk management.   The proceeds from this sustainable bond issuance will be used for refinancing existing debt, in accordance with the issuer’s framework and certification from the National Development and Reform Commission. Eligible environmental financing project categories include sustainable water and wastewater management, renewable energy, energy efficiency, environmentally sustainable management of living natural resources and land use, and green buildings. Eligible social financing project categories include affordable infrastructure, access to essential services, and affordable housing.

Recently, China Chengxin Green Finance International (CCXGFI) entered a collaboration with Zhuhai Rural Commercial Bank Co., Ltd. (Zhuhai RCB) to provide professional climate risk stress testing services. During the service, CCXGFI simulated various stress scenarios to identify key climate risk factors and employed mathematical models to construct stress transmission pathways. By integrating climate risks with macroeconomic indicators, CCXGFI assessed the impact on the bank’s credit asset quality. Additionally, the testing incorporated the "Capital Management Measures for Commercial Banks (Trial)" (2023 No. 4 Decree by the National Financial Regulatory Administration) along with the bank’s own market risk-weighted assets and credit risk-weighted asset calculation methods. The test results have since been publicly released on the Yuexinrong platform.   This testing provided Zhuhai RCB with a scientific basis for enhancing its capacity to manage climate change risks, while also contributing valuable experience to regional financial institutions in the field of green finance.

China Chengxin Green Finance International (CCXGFI) has provided climate risk stress testing services for China Power International Development Limited (Stock Code: 02380), in compliance with the Hong Kong Stock Exchange (HKEX) requirements and adhering strictly to the International Financial Reporting Standards IFRS S2. This service integrated the climate transition risk stress testing framework from the People's Bank of China and referenced climate change scenarios from the IPCC (Intergovernmental Panel on Climate Change) and NGFS (Network for Greening the Financial System) to develop a customized testing approach tailored to the company's specific operational conditions.   In terms of stress scenario settings, the testing simulated three carbon price scenarios—mild, moderate, and severe—based on domestic carbon emission trading market price fluctuations and NGFS carbon price settings. The key assumptions included long-term conditions related to carbon emissions, cost payments, technological advancements, and market pricing power, used to analyze the company's financial performance and potential carbon emission gaps under various carbon price scenarios. Additionally, through financial modeling, CCXGFI conducted an in-depth analysis of the future financial performance of key emitting subsidiaries of China Power and assessed the impact on the group's overall financials by consolidating parent and subsidiary financial statements.   This testing not only provided China Power with a comprehensive understanding of its financial risks and opportunities in carbon reduction but also offered crucial reference points for the company's strategic planning in the evolving carbon market.