Capital management notice

Guo Fa [2019] No.26

People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, ministries and commissions and institutions directly under the State Council:

Implementing the capital system of fixed assets investment projects (hereinafter referred to as investment projects) and reasonably determining and adjusting the capital ratio in a timely manner are important policy tools to promote effective investment and prevent risks, as well as an important means to deepen the reform of investment and financing system and optimize the investment supply structure. In order to give full play to the role of the capital system of investment projects, ensure proper control and differential treatment, and promote the close integration and coordinated promotion of effective investment and risk prevention, the notice on strengthening the capital management of investment projects is as follows:

First, further improve the capital system of investment projects.

(1) Define the scope and nature of the capital system applicable to investment projects. This system is applicable to enterprise investment projects and government investment projects in China. Investment project capital, as the amount of investment subscribed by investors in the total investment of the project, must be non-debt funds used for investment projects, and the project legal person does not bear any debt and interest on this part of funds; Investors can enjoy the owner's rights and interests in proportion to their capital contribution, or transfer their capital contribution, but they may not withdraw their capital contribution in any way. Unless otherwise stipulated by the CPC Central Committee and the State Council.

(2) Capital of investment projects shall be subject to classified accounting management. The owner's equity of an investment project with independent legal personality can be used as the capital of the investment project. For investment projects that do not have the qualification of independent legal person, the project unit shall set up a special account, standardize the setting and use of accounting subjects, conduct independent accounting of the allocated funds and assets and liabilities of investment projects in accordance with the relevant financial accounting system of the state, and accordingly verify the capital amount and proportion of investment projects.

(three) according to the nature of investment projects, standardize and determine the proportion of capital. The investment projects to which the capital system applies belong to government investment projects. When examining and approving the feasibility study report, the relevant departments shall review the compliance of the financing methods of investment projects and the supporting documents of relevant sources of funds, and confirm the capital ratio and financing methods of investment projects in the approval documents. For enterprise investment projects, relevant financial institutions providing financing services should strengthen the review and supervision of the source, proportion and availability of funds for investment projects.

Second, appropriately adjust the minimum capital ratio of infrastructure projects.

(four) port, coastal and inland shipping projects, the minimum capital ratio of the project is adjusted from 25% to 20%.

(5) The minimum capital ratio of the airport project remains unchanged at 25%, and other infrastructure projects remain unchanged at 20%. Among them, short-board infrastructure projects in the fields of highways (including government toll roads), railways, urban construction, logistics, eco-environmental protection, people's livelihood, etc. can appropriately reduce the minimum capital ratio of the projects under the premise of clear investment return mechanism, reliable income and controllable risks, but the reduction rate shall not exceed 5 percentage points. For projects subject to the examination and approval system, the examination and approval department may, in accordance with these Provisions, specify the proportion of investment project capital reasonably determined by the project unit. For projects that implement the approval system or filing system, project units and financial institutions may independently adjust the capital ratio of investment projects according to these provisions.

(6) Where laws, administrative regulations and the State Council have other provisions on the capital ratio of relevant investment projects, those provisions shall prevail.

III. Encourage major investment projects to raise funds in compliance with laws and regulations.

(seven) for infrastructure and industries encouraged by the state, encourage project legal persons and project investors to issue equity and equity financial instruments through multiple channels to raise funds for investment projects.

(8) Various funds raised by issuing financial instruments, etc. , according to the unified accounting system of the state should be classified as equity instruments, can be recognized as investment project capital, but shall not exceed 50% of the total capital. In any of the following circumstances, it shall not be recognized as investment project capital:

1. There are additional income conditions such as principal and interest repurchase commitment and guaranteed bottom;

2. Before the repayment of the debt funds in this period, dividends can be paid or gains can be made;

3. In liquidation, the liquidation sequence takes precedence over other debt funds.

(9) Local governments at all levels and their relevant departments can make overall use of budget funds at the corresponding level, subsidies from higher authorities and other financial funds to raise project capital, and can use government special bonds as qualified capital for major projects in accordance with relevant regulations.

Fourth, strictly standardize management and strengthen risk prevention.

(10) Project loan funds, shareholder loans, "physical bonds" and other funds that do not meet the requirements of the state shall not be used as the capital of investment projects. To raise funds for investment projects, it is not allowed to increase the hidden 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. Shall not default on the project payment.

(11) When determining the capital of investment projects, financial institutions should strictly distinguish between investment projects and project investors, judge their rights and interests or debt attributes according to the power and responsibility relationship between different sources of funds and investment projects, conduct a comprehensive review of the authenticity, compliance, investment income and loan risk of capital, and independently decide whether to issue loans and the number and proportion of loans. Project units shall cooperate with financial institutions to carry out capital review of investment projects, provide certification materials on the authenticity of capital and sources of funds, and be responsible for the authenticity of the certification materials.

(twelve) from the date of this notice, all investment projects that have not been approved by the relevant departments for feasibility study report, approved project application report and filing procedures shall be implemented in accordance with this notice. For investment projects that have gone through the relevant procedures, have not yet started construction, and financial institutions have not yet issued loans, the financing plan can be adjusted according to this notice, and the approval, approval or filing procedures can be re-handled. Investment projects that have signed relevant loan contracts with financial institutions may be executed in accordance with the original contracts.

the State Council