Legal analysis: Smoothing funds are jointly established by state-owned capital holding companies and private enterprises.

Under the guidance of government policy objectives, it operates in a market-oriented manner to successfully resolve government debt and support the construction of public welfare projects.

Funds raised are unsecured or guaranteed as they are backed by government credit.

In addition, a complete financing and withdrawal mechanism has been established.

Legal basis: "Company Law of the People's Republic of China" Article 174 When a company merges, the claims and debts of the merging parties shall be inherited by the company that survives the merger or the newly established company.