Fitch Ratings assigned a first-time long-term foreign-currency issuer default rating of B to China-based Redsun Properties Group Ltd.

The outlook is positive.

The company, a subsidiary of Hong Yang Group Co. Ltd., made its debut on the Hong Kong bourse in July.

Fitch said the rating is supported by the company's high-quality land bank that drives its contracted sales growth, as well as its better gross profit margin compared to similarly rated peers. Selling prices are expected to be supported by firm demand, although restrictions on home-buying in Jiangsu province create uncertainty for the company's contracted sales pace.

The company's land bank is focused on Nanjing, the capital of Jiangsu province, as well as the Yangtze River Delta.

The rating agency noted that the company's investment-property portfolio of retail malls that provide wholesales of household construction and decoration materials occupies a market niche and thus has a nearly full occupancy.

The positive outlook reflects the rating agency's expectation that the company will maintain a prudent financial policy for acquiring land and that its leverage will be maintained below 50% in the next 12 to 24 months.