The State Council issues the circular to strengthen the capital management

With the signature and approval of Premier Li Keqiang, the State Council recently issued the notice on strengthening the capital management of fixed asset investment projects (hereinafter referred to as the notice). The circular points out that it is an important policy tool for promoting effective investment and preventing risks to implement the capital system for fixed asset investment projects and reasonably determine and timely adjust the proportion of capital. It is also an important means for deepening the reform of investment and financing system and optimizing the investment supply structure. In accordance with the requirements of the CPC Central Committee and the State Council on "six stability" and deepening the reform of the investment and financing system, we should give better play to the role of the capital system of investment projects, maintain control and treat differently, and realize the close combination and coordinated promotion of effective investment and risk prevention. The circular puts forward four policy measures to strengthen the capital management of investment projects.

The first is to further improve the capital system of investment projects. Define the application scope and nature of the capital system of investment projects, implement the capital accounting management of investment projects by category, and determine the proportion of capital according to the nature of investment projects.

The second is to properly adjust the minimum capital ratio of infrastructure projects. For port, coastal and inland navigation projects, the minimum capital ratio of the project is adjusted from 25% to 20%. The minimum capital ratio of airport projects remains unchanged at 25% and that of other infrastructure projects at 20%. Among them, the minimum capital ratio of infrastructure projects in the areas of roads (including government toll roads), railways, urban construction, logistics, ecological environment protection, social livelihood, etc. can be appropriately reduced on the premise that the investment return mechanism is clear, the income is reliable, and the risk is controllable, but the reduction shall not exceed 5%.

Third, encourage to raise capital for major investment projects in accordance with laws and regulations. For the infrastructure sector and industries encouraged by the state, project legal persons and project investors are encouraged to raise no more than 50% of the project capital through the issuance of equity and equity financial instruments. Local governments at all levels and their relevant departments may make overall use of various kinds of financial funds such as budget funds at the same level and subsidy funds at the higher level to raise project capital, and may, in accordance with relevant regulations, regard government special bonds as capital funds for major projects that meet the requirements.

The fourth is to strictly standardize management and strengthen risk prevention. The loan funds of the project, the loans of shareholders that do not conform to the provisions of the state, and the funds such as "famous shares and real debts" shall not be used as the capital funds of the investment project. In raising capital for investment projects, it is not allowed to increase the implicit debts of local governments in violation of regulations, and it is not allowed to violate the relevant requirements of the state on the asset liability ratio of state-owned enterprises. The project payment shall not be in arrears. When identifying the capital of investment projects, financial institutions should strictly distinguish between investment projects and project investors, and comprehensively review the authenticity, compliance, investment income and loan risk of the capital.