Net News: The Beijing Housing and Urban-Rural Development Commission recently issued a notice on the issuance of the "Opinions on Introducing Social Capital to Participate in the Renovation of Old Residential Areas."

The "Opinions" show that various methods should be used to introduce social capital to participate in the renovation of old communities, including: participation through the provision of professional property services, participation through "renovation + operation + property", participation through the provision of professional services, and encouragement of social participation.

Capital participates in the renovation of old communities as the implementation body, and the district government can determine the implementation body of the renovation of old communities through the integrated bidding of "investment + design + construction + operation".

In addition, the "Opinions" clarify that fiscal, taxation and financial support for social capital's participation in the renovation of old communities will be increased, and loan interest discounts of no more than 5 years and no more than 2% will be provided to qualified projects.

Support the introduction of professional property services through the "try first before you buy" approach, and each district government can provide incentives and subsidies to the introduced property service companies recognized by the owners' conference or meeting.

Financial institutions are encouraged to participate in investing in urban renewal funds such as the renovation of old communities set up by the urban government.

Support social capital to carry out corporate asset securitization business such as REITs and ABS.

Support social capital to apply for medium and long-term loans from development financial institutions, commercial banks and other financial institutions through project financing, company financing and other methods.

Support social capital to use fiscal subsidies, government in-kind capital injections, property rights units and residents' capital contributions as capital for project financing.

In addition, the "Opinions" have made explanations and arrangements in the overall utilization of existing resources, simplified approval, supervision and management, etc.