On September 4, the "China Galaxy-Quzhou Huicheng Industrial Hotel Asset-Backed Securities Plan" led by Quzhou Huicheng Industrial Development Group Co., Ltd. (hereinafter referred to as "Huicheng Group") was successfully issued on the Shenzhen Stock Exchange. This product not only marks the city's first Commercial Mortgage-Backed Securities (CMBS), but also sets new records for regional financial innovation: with an issuance scale of 230 million yuan and a term of 18 years, it breaks the city's record for the longest-term direct financing product; the senior tranche coupon rate is as low as 2.33%, setting a new low for similar products in the southwestern Zhejiang region.
Even amid the current tightening debt market environment, this CMBS product demonstrated strong market appeal, achieving an oversubscription of 2.97 times, reflecting investors' high recognition of Huicheng Group's asset quality, credit standing, and operational capabilities. Notably, this project is also the first hotel-category CMBS product in the province this year. Its core value lies in revitalizing existing hotel assets through asset securitization, not only optimizing the company's financial structure and reducing financing costs, but also providing an innovative financing model for local state-owned enterprises to focus on their core business and improve asset operational efficiency.
The successful issuance of this CMBS is not an "accidental breakthrough" for Huicheng Group in financial innovation, but rather the inevitable result of its continuous efforts in building investment and financing capabilities. In recent years, Huicheng Group has continuously expanded its investment scale in key construction projects around local development needs - completing approximately 7.5 billion yuan in fixed asset investment for the full year 2024; in the first half of 2025, it has implemented 55 key projects with completed investment of 3.745 billion yuan. With stable investment intensity, it has ranked first among municipal state-owned enterprises in fixed asset investment for six consecutive quarters. Previously, the group successfully issued the province's first China Insurance Depository supply chain ABS (Asset-Backed Securities). The implementation of this CMBS further improves its diversified financing system, demonstrating the leading role of state-owned enterprises in financial innovation.
"The success of this project not only injects new momentum into the group's high-quality development, but more importantly, through the exploration of asset securitization, it provides a replicable and scalable solution for more local state-owned enterprises to revitalize existing assets and optimize capital structure," said a relevant person in charge of Huicheng Group.
Going forward, Huicheng Group will continue to focus on the municipal party committee and government's strategic goal of building a central city at the junction of four provinces. Taking this CMBS issuance as an opportunity, it will further innovate asset operation models, enhance market-oriented investment and financing capabilities, and continuously unleash the potential of state-owned assets.
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