Zhongxin Finance, May 25th. The General Office of the State Council issued the "Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment" (hereinafter referred to as "Opinions") on the 25th, proposing to further improve the efficiency of recommendation and review, and encourage more qualified infrastructure. REITs projects are issued and listed; at the same time, the relevant tax policies to support infrastructure REITs will be implemented in detail.
The "Opinions" first clarified the key areas for revitalizing stock assets.
The first is to focus on revitalizing infrastructure project assets with large stock scale, good current income or high growth potential, including transportation, water conservancy, clean energy, affordable rental housing, water, electricity and heat and other municipal facilities, ecological and environmental protection, industrial parks, Warehousing and logistics, tourism, new infrastructure, etc.
The second is to coordinate the revitalization of existing project assets and the organic combination of reconstruction and expansion, including the reconstruction of comprehensive transportation hubs, and the retreat of industrial enterprises into parks.
The third is to orderly revitalize project assets that have been idle for a long time but have great development and utilization value, including old factories, cultural and sports venues, and idle land, as well as non-main business assets such as hotels, restaurants, and nursing homes run by state-owned enterprises.
The "Opinions" require focus on key areas to revitalize existing assets.
The first is to promote areas with heavy construction tasks, strong investment demand, large stock scale and good asset quality, actively revitalize stock assets, raise construction funds, support new project construction, and firmly hold the bottom line of risks.
The second is to promote areas with high local government debt ratios and greater pressure on fiscal revenue and expenditure balance to accelerate the revitalization of existing assets, steadily resolve local government debt risks, improve fiscal sustainability, and reasonably support the construction of new projects.
The third is to focus on implementing major regional strategies such as the coordinated development of Beijing, Tianjin and Hebei, the development of the Yangtze River Economic Belt, the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, the integrated development of the Yangtze River Delta, the ecological protection and high-quality development of the Yellow River Basin, and the promotion of the construction of the Hainan Free Trade Port. Relevant regions took the lead in increasing the vitality of stock assets, and gave full play to the role of demonstration and driving.
The "Opinions" also propose ways to optimize and improve the revitalization of existing assets: promote the healthy development of real estate investment trusts (REITs) in the infrastructure sector; promote government-social capital cooperation (PPP) in a standardized and orderly manner; actively promote standardized transactions of property rights; give full play to state-owned capital Investing and operating the company's functions; exploring and promoting the organic combination of revitalizing inventory and reconstruction and expansion; exploring the value of idle and inefficient assets; supporting mergers and reorganizations and other revitalization methods.
The "Opinions" make it clear that policy support for revitalizing stock assets should be increased.
Support banks, trusts, insurance, financial asset management, equity investment funds and other institutions to give full play to their respective advantages and actively participate in the revitalization of stock assets in accordance with the principle of marketization.
Encourage qualified financial asset management companies and financial asset investment companies to issue bonds to raise funds to solve problems such as the mismatch between the duration of liabilities and the duration of assets.
Strengthen investment and financing cooperation and actively promote projects to revitalize existing assets to relevant financial institutions.
In addition, the "Opinions" emphasize the use of recovered funds to increase effective investment and strengthen supporting financial support.
When arranging funds such as investment in the central budget, priority support can be given to new projects that revitalize stock assets and recover funds under the same conditions; give play to the role of special demonstration and guidance related to investment in the central budget, and encourage social capital to participate in revitalization in various ways State-owned stock assets.
For new projects that recover capital investment, local government special bonds can be supported according to regulations.
Banks and other financial institutions are encouraged to provide supporting financing support in accordance with market-oriented principles.
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