About CSCIs Affordable Housing Business in PRC

2014.08.26


(26 August 2014) China State Construction International Holdings Limited ("CSCI" or "The Company", stock code: 3311.HK) recently received enquiries from investors on certain local government in the PRC supported cities with large inventory of commodity housing to repurchase commodity housing as affordable housing and shanty town redevelopment housing, and its impact on CSCI.

The Company hereby states:

According to CSCI's knowledge, the cities that CSCI has affordable housing investment and construction business do not adopt the repurchase measure. As Ministry of Housing and Urban Rural Development ("MoHURD") announced, by the end of July, the PRC has started 5.90 million units of affordable housing and basically completed 3.40 million units, representing a 84% and 70% completion of national annual target respectively. The Company believes that with the development of new form of urbanization, the central government will continually support the construction of affordable housing, especially shanty town redevelopment. Lately, China Development Bank obtained Pledged Supplementary Lending of RMB1 trillion from the People’s Bank of China mainly to support the construction of affordable housing. 

CSCI currently has a satisfied progress of affordable housing investment and construction business in the PRC and is fully confident to achieve all the growth targets. The Company believes the individual case of certain local government repurchasing commodity housing as affordable housing has no direct impact on CSCI.

Thank you for your attention.