China News Service, March 26. According to the website of the SASAC, the SASAC recently issued the "Guiding Opinions on Strengthening the Debt Risk Management and Control of Local State-owned Enterprises" (hereinafter referred to as the "Opinions"), which clearly requires all localities to carry out bond life-cycle management , Focus on prevention and control of bond defaults; deal with the risk of bond defaults in accordance with the law, and strictly prohibit malicious evasion of debt; regulate the use of debt funds to ensure that they are invested in the main industry.
——Fully understand the importance of strengthening the current debt risk management and control of state-owned enterprises
All local SASACs should further improve their political positions, enhance their sense of responsibility, fully understand the importance and urgency of strengthening the current debt risk management and control of local state-owned enterprises, supervise and guide local state-owned enterprises to strictly implement their main responsibilities, and effectively enhance their bottom line thinking and risk awareness. Carry out debt financing and risk management in compliance with laws and regulations, strictly abide by capital market rules and regulatory requirements, do a good job in the payment of debt funds on schedule, must not maliciously evade debts, and strive to maintain the good market reputation of state-owned enterprises and the stability of the financial market.
——Improve the debt risk monitoring and early warning mechanism, and accurately identify high-risk companies
All local SASACs should speed up the establishment and improvement of local state-owned enterprise debt risk monitoring and early warning mechanisms, improve key debt risk indicator monitoring ledgers, follow up and analyze month by month, and make full use of information technology to strengthen the dynamic monitoring of debt risks of enterprises at all levels, so as to achieve early Identification, early warning and early response.
——Classified management and control of asset-liability ratio to maintain a reasonable level of debt
Local SASACs can refer to the industry warning line and control line of central enterprises’ asset-liability ratio for classified management and control, and implement dual constraints on debt scale and asset-liability ratio for highly indebted enterprises. “One enterprise, one policy” determines management and control objectives and guides enterprises through investment control. Measures such as reducing debt, increasing accumulation, introducing war investment, debt-to-equity swaps, etc., simultaneously reduce leverage and debt, and push the debt-to-asset ratio of highly indebted companies back to a reasonable level as soon as possible.
Supervise and guide enterprises to transform their over-reliance on debt-based investment for large-scale development concepts, scientifically determine the scale of investment based on financial affordability, and prevent debt risks from the source.
Strengthen the management and control of hidden debts of enterprises, strictly control asset out-of-balance sheet, off-balance sheet financing, etc., guide enterprises to use equity financing tools rationally, and deal with equity perpetual bonds and mergers such as perpetual bonds, perpetual insurance, and perpetual trusts. The balance of table fund products is restricted in the proportion of net assets, strict external guarantee management, guarantees are provided for companies with property rights based on the share ratio, in principle, no guarantees are provided for companies without property rights, and corporate mutual guarantees and other bundled financing activities are strictly controlled. , To prevent the cross transmission of debt risks.
Regulate the investment and financing management of major projects of platform companies, and strictly control disguised financing activities that lack transactional substance.
——To carry out bond life-cycle management, focusing on preventing and controlling bond defaults
All local SASACs should make preventing local state-owned enterprise bonds from defaulting as the top priority of debt risk management and control.
Explore the implementation of annual bond issuance plan management, strictly review the issuance plans of companies that are included in the key debt risk control scope, prohibit fraudulent bond issuance, false disclosure of information, manipulation of market prices and other violations of laws and regulations, and guide local state-owned enterprises to strictly limit bond issuance conditions for their subsidiaries .
——Dispose of the risk of bond default in accordance with the law, and strictly prohibit malicious evasion of debt
For bond defaults that have occurred, local SASACs shall promptly report to the people's government at the same level, and under the unified leadership of the local government, earnestly perform territorial responsibilities, and guide the defaulting enterprise to properly handle risks in accordance with the principles of marketization, rule of law, and internationalization. , To replenish funds by revitalizing land and selling equity, actively communicating and coordinating with all creditors, striving to reach a settlement plan, and at the same time striving to restore market confidence and prevent risk stamping and spillover.
For those who are unable to resolve risks and need to go bankrupt, urge companies to perform bankruptcy procedures in compliance with laws and regulations, strengthen information disclosure management, and timely and accurately disclose major issues such as changes in shareholders or actual controllers, asset transfers, and new large debts. Protect the legal interests of creditors and investors.
——Regulate the use of debt funds to ensure that they are invested in the main industry
All local SASACs should strengthen the management and control of the use of debt financing of local state-owned enterprises, and urge enterprises to timely and efficiently invest the funds raised in key areas and important industries such as strategic security, industry leadership, national economy and people’s livelihood, and public services. In principle, they must ensure the return of investment projects. The rate is higher than the cost of capital, and the capital market's function of serving the real economy is effectively brought into play.
Supervise and urge enterprises to strictly implement national financial regulatory policies, arrange funds in accordance with the use agreed in the financing agreement, highlight the main business and focus on industries, prohibit excessive financing to form invalid funds, prohibit idling, de-realization of funds, and prohibit misappropriation of funds and illegal arbitrage.
Explore the dynamic monitoring of major corporate capital expenditures to effectively prevent capital use risks.
——Promote the deepening reform of state-owned enterprises in an all-round way to effectively enhance the ability to resist risks
All local SASACs must resolutely implement the three-year action requirements for the reform of state-owned enterprises, based on the establishment of a long-term mechanism for local state-owned enterprise debt risk management and control, and supervise and guide enterprises to solve risk problems through comprehensive deepening of reforms.
Measures such as strengthening the management and control of the "two funds", the governance of loss-making companies, the disposal of inefficient and ineffective assets, and the divestiture of non-main business and non-advantageous enterprises (businesses) have improved the quality of corporate assets and operational efficiency.
Strictly control low-margin trade, financial derivatives, PPP and other high-risk businesses, prohibit false trade businesses such as financing trade and "idling" and "orders", and manage major risks in production and operation.
Accelerate the optimization and structural adjustment of the state-owned economy, accelerate the transformation and upgrading of digitalization, networking, and intelligentization, accelerate the development of new technologies, new models, and new business formats, and continuously enhance independent innovation capabilities, market core competitiveness, and anti-risk capabilities.
—— Leverage the combined efforts of supervision and improve the debt risk management and control system of state-owned enterprises
All local SASACs should take strengthening the debt risk management and control of local state-owned enterprises as a systematic project, from investment planning, financial supervision, appraisal and allocation, capital budgeting, property management, internal control management, supervision and accountability, and cadre appointment and dismissal. We will implement comprehensive policies in various links, improve the regulatory system, and exert the combined force of supervision to build a firm bottom line of risk.
Strengthen cooperation with local branches of the People's Bank of China and the Securities Regulatory Bureau, promote the sharing of debt risk information, and work together to warn and prevent major debt risks of enterprises.
The State-owned Assets Supervision and Administration Commission of the State Council will, in accordance with the requirements for promoting the establishment of a large-scale state-owned asset supervision pattern, supervise and guide local governments to strengthen the debt risk management and control of local state-owned enterprises, and accelerate the establishment of work contact mechanisms, daily monitoring mechanisms, risk assessment guidance mechanisms, and major risk reporting mechanisms.