Shanghai Construction Group announces RMB 23bn in guarantees

Shanghai Construction Group Co., Ltd. has issued guarantees amounting to RMB 23.00 billion in October 2025. These guarantees primarily support 17 subsidiaries and one joint venture for various financial needs, including loans, bank acceptance bills, advance payment guarantees, performance guarantees, and migrant worker wage guarantees. This brings the company's total outstanding external guarantees to RMB 639.50 billion as of October 31, 2025.

A significant portion, RMB 22.85 billion, of the guarantees provided this month are for 15 subsidiaries with an asset-liability ratio exceeding 70%. Additionally, RMB 0.11 billion in guarantees were issued for two subsidiaries with an asset-liability ratio below 70%, and RMB 0.05 billion for one joint venture also below 70%. The total external guarantees of RMB 639.50 billion represent 139% of the company's latest audited net assets, indicating a substantial level of financial commitment.

The company's board of directors approved the 2025 annual guarantee quota on April 14, 2025, with further authorization from the general meeting of shareholders on June 27, 2025. Shanghai Construction Group maintains that these guarantees are necessary for the normal operations of its subsidiaries and joint ventures, asserting that their good operational status mitigates risk. The company has not provided any guarantees for its controlling shareholders or actual controllers.