Shanghai Construction Group guarantees bn in new funding for subsidiaries

Shanghai Construction Group (SCG) provided 1.558 bn yuan in guarantees to 14 of its subsidiaries in September 2025. These guarantees, primarily for loans, bank acceptance bills, advance payment guarantees, performance guarantees, and migrant worker wage guarantees, were extended to subsidiaries with asset-liability ratios exceeding 70%. The company emphasized these are for controlled entities with good operating conditions, mitigating risk.

As of September 30, 2025, SCG's total external guarantees amounted to 64.521 bn yuan, representing 140% of its most recent audited net assets. Guarantees for controlling subsidiaries alone reached 64.489 bn yuan, also 140% of net assets. The company noted no overdue external guarantees.

The guarantees are structured as joint and several liability assurances, with terms ranging from one month to seven years. For the full year 2025, SCG anticipates providing total guarantees of 103.134 bn yuan, with 102.374 bn yuan allocated to 90 controlling subsidiaries and 760 m yuan to three joint ventures. No guarantees were provided for the company's controlling shareholders, actual controllers, or their associates.