General Office of the State Council on Further Revitalizing Stock Assets
Ideas for Expanding Effective Investments
State Office issued No. 19 [2022]
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, all ministries and commissions of the State Council, and all institutions directly under the Central Government:
After years of investment and construction, my country has formed a large number of stock assets in infrastructure and other fields, providing important support for promoting economic and social development.
Effectively revitalizing existing assets and forming a virtuous cycle of existing assets and new investment is of great significance for improving the level of infrastructure operation and management, broadening social investment channels, rationally expanding effective investment, reducing government debt risks, and reducing corporate debt levels.
In order to thoroughly implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully, accurately and comprehensively implement the new development concept, accelerate the construction of a new development pattern, and promote high-quality development, with the approval of the State Council, the following opinions are hereby offered on further revitalizing existing assets and expanding effective investment. .
1. Focus on the key direction of revitalizing stock assets
(1) Key areas.
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.
(2) Key areas.
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.
(3) Key enterprises.
The revitalization of stock assets treats all participating market entities equally.
Guide and support state-owned enterprises with many existing infrastructure assets, heavy construction tasks, and high debt ratios, take the revitalization of existing assets as an important means to maintain and increase the value of state-owned assets, prevent debt risks, raise construction funds, and optimize asset structure, and select suitable existing assets. , take a variety of ways to revitalize.
Encourage private enterprises to participate in the revitalization of state-owned stock assets according to actual conditions, actively revitalize their own stock assets, and use recovered funds for reinvestment to reduce business risks and promote sustainable and healthy development.
2. Optimizing and perfecting the way of revitalizing stock assets
(4) Promote the healthy development of real estate investment trusts (REITs) in the infrastructure sector.
Further improve the efficiency of recommendation and review, and encourage more eligible infrastructure REITs projects to be issued and listed.
For projects that play an important role in maintaining the stability of the industrial chain and supply chain and strengthening people's livelihood security, under the premise of meeting the issuance requirements, meeting market expectations, and ensuring that risks are controllable, it is possible to further flexibly and reasonably determine requirements such as operating years and income concentration. .
Establish and improve the fundraising mechanism, and explore the establishment of a multi-level infrastructure REITs market.
If the issuance of infrastructure REITs by a state-owned enterprise involves the non-public agreement transfer of state-owned property rights, it shall be reported to the state-owned assets supervision and administration agency at the same level for approval as required.
Research and advance REITs-related legislation.
(5) Promoting public-private partnership (PPP) in a standardized and orderly manner.
Encourage existing projects with long-term and stable operating income to use the PPP model to revitalize existing assets and improve operational efficiency and service levels.
Where social capital parties effectively revitalize existing assets and reduce the amount of government subsidies by innovating operating models, introducing advanced technologies, and improving operating efficiency, local people's governments may use appropriate methods to reward them through existing funding channels.
(6) Actively promote the standardized transaction of property rights.
Give full play to the value discovery and investor discovery functions of the property rights exchange, innovate transaction products and transaction methods, strengthen the refined service of the whole process, assist in consulting, due diligence, program optimization, information disclosure, technical support, financing services, etc. The rational flow and optimized allocation of stock assets will open up green channels, and promote the revitalization and trading of stock assets to be more standardized, efficient and convenient.
Adopt various methods to increase publicity and guidance to attract more buyers to participate in transaction bidding.
(7) Give full play to the functions of state-owned capital investment and operation companies.
State-owned enterprises are encouraged to rely on state-owned capital to invest in and operate companies, and to revitalize long-term idle stock assets and integrate non-main business assets through market transactions, agreement transfers, free transfers, asset replacement, and joint integration, etc., as required.
By issuing bonds and other means, it provides medium and long-term financial support for qualified state-owned capital investment and operating companies to revitalize stock assets.
(8) Explore and promote the organic combination of revitalizing the stock and rebuilding and expanding.
Attract social capital to participate in revitalizing the city's old asset resources, especially the renovation of old communities, and further enrich the functions of existing assets and improve asset efficiency through precise positioning, improving quality, and improving uses.
According to local conditions, actively explore modes such as the sinking of sewage treatment plants, the superstructure of subways, the comprehensive development of above-ground and underground spaces in transportation hubs, and the development of commercial public service spaces in affordable rental housing communities, so as to effectively revitalize existing railway stations and surrounding developable land and other assets , to increase the level of project revenue.
The relocation or functional transformation and upgrading of the old port area shall be fully considered in the national land space planning and relevant special planning at all levels, and the optimization of the planned use of the port passenger terminal and the implementation of comprehensive development and utilization shall be supported.
(9) Mining the value of idle and inefficient assets.
Promote the transformation and transformation of idle and low-efficiency assets, reasonably adjust the planned use and development intensity in accordance with laws and regulations, and develop new functions such as innovative research and development, health care, old-age care, sports and fitness, leisure tourism, community services or as affordable rental housing .
Support financial asset management companies, financial asset investment companies, and state-owned capital investment and operating companies to revitalize idle and inefficient assets through the acquisition and disposal of non-performing assets, substantive restructuring, and market-based debt-to-equity swaps.
(10) Support mergers and reorganizations and other revitalization methods.
Actively explore the revitalization of stock assets through market-oriented methods such as asset securitization.
Under the premise of complying with anti-monopoly and other laws and regulations, leading enterprises in the industry are encouraged to strengthen the optimization and integration of existing assets through mergers and reorganizations, transfer of property rights, etc., to improve asset quality and scale benefits.
Through mixed ownership reform, introduction of strategic investors and professional operation and management institutions, etc., the operation and management capabilities of stock asset projects have been improved.
3. Increase policy support for revitalizing stock assets
(11) Actively implement the conditions for revitalizing the project.
According to the specific conditions of the existing asset projects, various revitalization conditions are classified and implemented.
For projects with unclear property rights, rationalize the property rights relationship in accordance with laws and regulations, complete the definition of property rights, and speed up the registration of relevant property rights.
For projects with incomplete preliminary work procedures, relevant procedures shall be completed in accordance with relevant regulations, and procedures such as completion acceptance and charging standard verification shall be accelerated.
For the difficult problems encountered in the process of project revitalization, explore and formulate reasonable solutions and actively promote the implementation.
(12) Effectively improve the level of project income.
Improve the dynamic adjustment mechanism for public services and public product prices, reasonably adjust the charging standards for sewage treatment in accordance with laws and regulations and procedures, and promote local people's governments at or above the county level to establish and improve the charging system for domestic waste treatment.
Establish and improve the water price formation mechanism for water conservancy projects that is compatible with the investment and financing system, and promote the conservation and utilization of water resources and the sound operation of water conservancy projects.
For the stock asset projects with low overall income level, improve the market-oriented operation mechanism, improve the project income level, support the development of asset reorganization, and create conditions for revitalizing the stock assets.
Research through the reasonable combination of assets and other methods to package quasi-public and business projects to enhance the attractiveness of assets.
(13) Improve planning and policies for land and sea use.
Guide the existing projects to be revitalized in accordance with laws and regulations to improve the planning, land and sea use, property rights registration, land division and other procedures, actively assist in properly solving the problems related to the use of land and sea areas, and actively support those involved in the procedures or issuing certificates.
Adhere to planning first and then construction. If it is necessary to adjust the relevant planning or the use of land and sea areas in the process of revitalizing the existing assets, the planning implementation assessment shall be fully carried out, and relevant procedures shall be performed in accordance with laws and regulations to ensure that the use of land and sea areas complies with relevant laws and regulations and national land space. Use Control Requirements.
(14) Implement fiscal, taxation and financial policies.
Implement detailed tax policies to support infrastructure REITs.
For key projects that meet the conditions for revitalizing stock assets and have a relatively large amount of tax payment, tax authorities at all levels will do a good job in service and publicity work, guide enterprises to pay taxes in accordance with laws and regulations, and help revitalize stock assets under the current tax policy framework.
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.
Fourth, make good use of recovered funds to increase effective investment
(15) Guide the use of recovered funds.
Strengthen the management of the recovery funds for revitalizing the stock assets. In addition to being used for the employee resettlement, tax payment, debt repayment and other expenditures of the project according to regulations, it should be ensured that it is mainly used for project construction to form high-quality assets.
Encourage the use of recovered funds for profitable project construction by means of capital injection, and give full play to the leverage of recovered funds to expand investment.
For areas with high local government debt ratios and great pressure on fiscal balance of payments, the funds recovered from revitalizing stock public assets can be appropriately used for "three guarantees" expenditures and debt repayment.
The use of recovered funds shall comply with relevant policy requirements such as budget management and supervision and management of state-owned assets.
(16) Accurately and effectively support the construction of new projects.
To revitalize existing assets and recover funds and plan to invest in the construction of new projects, priority should be given to supporting projects in key areas such as comprehensive transportation and logistics hubs, large clean energy bases, environmental infrastructure, and “one old and one small”, focusing on supporting 102 projects in the “14th Five-Year Plan” For major projects, priority should be given to projects under construction or projects that meet relevant planning and ecological and environmental protection requirements and have mature preliminary work.
Relevant departments should speed up the preliminary work procedures such as the approval and filing of relevant projects, planning site selection, land and sea use, environmental impact assessment, and construction permits, so as to promote the implementation of the project as soon as possible and create a physical workload.
(17) Strengthen supporting funds.
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.
V. Strictly implement various risk prevention and control measures
(18) Promoting the revitalization of stock assets in a stable and orderly manner in accordance with laws and regulations.
Strictly implement the requirements to prevent and resolve the hidden debt risks of local governments, and strictly prohibit the increase of hidden local government debts in the process of revitalizing existing assets.
Adhere to the principle of marketization and rule of law, strictly implement the regulations on the supervision and management of state-owned assets, and do a good job in financial auditing, asset evaluation, decision-making approval, etc. The exchange and other open and transparent channels shall reasonably determine the transaction price and strictly prevent the loss of state-owned assets.
Fully protect the legitimate rights and interests of creditors, and avoid dangling claims in the process of transferring existing assets.
Taking multiple measures to do a good job of staff placement, to create favorable conditions and atmosphere for revitalizing the stock assets.
All projects to be issued infrastructure REITs should comply with the relevant requirements of major national strategies, development plans, industrial policies, investment management regulations, etc., to ensure project quality and prevent market risks.
(19) Improve the ability of professional institutions to perform their duties in compliance with regulations.
Strictly implement the self-discipline rules, practice standards and business norms of relevant intermediaries, promote intermediaries, etc. to perform their duties and responsibilities, and provide professional services such as due diligence, project evaluation, financial and legal consultation for revitalizing existing assets in accordance with laws and regulations.
Actively cultivate professional institutions that serve the revitalization of stock assets, and improve the level of professional services.
Intermediaries that violate relevant laws and regulations shall be held accountable according to law.
(20) Ensure the stable operation of infrastructure.
For infrastructure projects with strong public attributes, when revitalizing existing assets, the relationship between the project’s public welfare and business should be properly handled to ensure that the investor introduces or establishes an infrastructure operation and management organization with strong capabilities and rich experience after taking over. Maintain the stable operation of infrastructure, effectively protect public interests, and prevent and defuse potential risks.
Promote infrastructure REITs fund managers and operation management institutions to improve the operation mechanism, better play the professional role of original stakeholders in project operation and management, and ensure the continuous and stable operation of the project during the existence of the fund.
6. Establish work ledger to strengthen organizational guarantee
(21) Implement ledger management.
Comprehensively sort out the stock assets in infrastructure and other fields in various regions, screen out projects that meet certain conditions for revitalization, establish a ledger for revitalizing stock assets, and implement dynamic management.
According to the type and basic situation of the items included in the ledger, the revitalization plan shall be clarified one by one, and the responsible units and persons shall be implemented.
Local people's governments at all levels should strengthen guidance and coordination, regularly carry out project scheduling, sort out and grasp the progress of projects, solve existing problems in a timely manner, and mobilize the enthusiasm of private investment to participate.
(22) Establish and improve coordination mechanisms.
Led by the National Development and Reform Commission, together with the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Housing and Urban-Rural Development, the People's Bank of China, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration of Taxation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and other departments, strengthen information communication and policy connection for the revitalization of stock assets, and establish Improve the working mechanism, clarify the division of tasks, provide guidance and supervision, coordinate and solve common problems, form a joint effort, and report major issues to the Party Central Committee and the State Council in a timely manner.
All regions shall establish relevant coordination mechanisms to effectively revitalize existing assets and recover funds for the construction of new projects.
(23) Strengthen supervision, encouragement and guidance.
Areas or units that have achieved outstanding results in revitalizing stock assets and expanding effective investment will be actively encouraged in appropriate ways; those with long-term idle assets and ineffective revitalization work will be given more supervision and supervision by means of interviews and accountability.
In a timely manner, the revitalization of stock assets and the expansion of effective investment related work will be taken as the key inspection content of the State Council's major inspection.
The study will encourage the revitalization of stock assets into the assessment and evaluation system of state-owned enterprises.
For areas with high local government debt ratios, focus on urging them to reduce debt ratios and improve reinvestment capabilities by revitalizing stock assets.
The relevant information on the revitalization of state-owned stock assets in the current year shall be included in the annual state-owned assets reports of local governments at all levels.
(24) Actively carry out pilot exploration.
According to actual work needs, select no less than 30 attractive and representative key projects nationwide, and identify a group of relevant institutions that can provide strong support for revitalizing existing assets and expanding effective investment, and carry out pilot demonstrations. Form a replicable and generalizable experience and practice.
Guide all regions to actively learn from advanced experience, study and formulate powerful and effective measures to revitalize existing assets according to local conditions, and prevent "rushing up".
Office of the State Council
May 19, 2022