(China Institute of Land and Resources Economics, Beijing, 10 1 149)

Mining is a high-risk and long-term industry. In the era of planned economy, in order to ensure the normal operation of the whole national economic system, the government mainly considers the mineral exploration and development layout of the whole industry. As the main body of investment, the government organizes industrial activities, occupies the distribution and income of products, and bears the investment risks of the whole mining industry. In the market economy, mineral exploration and development are closely combined, forming a broad mining concept. The government's administrative management function of mining industry is separated from the management right of mining enterprises, and the whole industry operates in accordance with market rules from investment to production and distribution, giving play to the function of market allocation of resources. In market economy countries, the mining capital market is an important part of the mining market and the foundation and important link of the whole mining operation. With the globalization and informatization of mining economy, a global unified mining capital market has basically taken shape. International mining capital circulation has surpassed the mineral products market and become an important driving force for the development of mining economy. However, in China, the establishment and development of mining capital market is relatively slow.

First, the status of China's mining investment and financing

With the reform and development of mining enterprises and the transformation of geological prospecting economic system since 1998, China mining industry has gradually developed from the financing mode of relying solely on financial planning to the diversified financing mode. At present, the basic framework of the investment and financing system that meets the requirements of the socialist market economy has been initially established. Compared with the traditional system, its financing mode and operation mechanism have undergone profound changes, which are mainly manifested in the diversification of mining investment subjects, multi-channel sources of funds, diversified financing methods and enhanced awareness of financing risks.

1. Diversification of mining investment entities

Under the traditional investment system, the central government is the only investor, local governments and enterprises cannot invest, and private investment is excluded. After more than 20 years of reform and opening-up, the main body of mining investment has expanded, and the government, enterprises, residents and foreign businessmen have different degrees of investment decision-making power, forming a diversified investment body and gradually forming a mechanism of "who invests, who makes decisions, who benefits and who bears risks".

From 1986 to 2003, the national financial investment in geological exploration fees (absolute amount) increased year by year, from 3 billion yuan in 1986 to 107 billion yuan in 2003, with an average annual increase of 8%. However, its relative number is decreasing year by year, and the proportion of geological exploration expenditure in fiscal expenditure has dropped from 1.39% in 0986 to 0.43% in 2003. Moreover, the proportion of national financial investment in the total investment in land exploration is also decreasing year by year (see figure 1), from 97.42% in 1986 to 27.88% in 1998. From 1999 to 2003, the proportion was slightly higher than 40%, which was mainly due to the sharp decline in non-financial capital investment, rather than the direct result of the increase in financial investment. This also reflects the influence of the system reform of geological prospecting units on geological survey from one side.

Figure 1 Proportion of land survey fee to total financial input (%)

According to the statistical data from 1999 to 2003 (see table 1), the proportion of financial planned investment in geological exploration decreased from 1999 to1.83% to 6.02% in 2003. The proportion of enterprises' self-raised funds has been increasing, from 65438+64.58% in 0999 to 93.55% in 2003. Of course, if oil and gas minerals are removed, this ratio will change greatly (see Figure 2).

Table 1 1999 ~ 2003 China Geological Exploration Fund Source: 10,000 yuan.

Source: 1. China Land and Resources Yearbook (2000 ~ 2002).

Figure 2 Comparison of the proportion of non-oil and gas geological exploration funds sources

2. Annual Report on Comprehensive Statistics of Land and Resources (2002-2003).

2. Diversification of financing methods

Under the planned economy system, there is no real mining financing activity, and everything is carried out according to the national plan. At present, both mining enterprises and geological prospecting enterprises can make their own decisions, and can raise funds through bank loans, issuing securities, commercial credit, joint venture and cooperative exploration, cooperative development, etc. , and can also be financed through project financing. In addition to social public welfare geological exploration projects mainly invested by the state, many projects are jointly invested.

From 1.999 to 2003, the total financing scale of mining enterprises was 387.61.800 million yuan (see table 2), of which equity financing was 2.81.993 billion yuan and debt financing was 1.05625 billion yuan, accounting for 7.25% of the total financing respectively.

1999 to 2003 financing situation of mining enterprises unit: 100 million yuan.

Note: 1. The data in this table are arranged according to the main indicators of industrial enterprises in China Statistical Yearbook (1998 ~ 2004).

2. Mining enterprises in this table refer to all state-owned and non-state-owned mining enterprises above designated size.

According to the statistics of listed companies, there are more than 200 listed companies related to mineral resources exploration and exploitation in Shanghai and Shenzhen stock markets (statistics in 2003). Judging from the main business of these listed companies (according to the prospectus of listed companies), there are more than 20 companies engaged in mineral resources exploration and exploitation (see Table 3).

Table 3 Listed companies of mineral resources exploration and exploitation in Shanghai and Shenzhen stock markets (as of the end of 2003)

3. Multi-channel funding sources

Under the traditional investment system, funds are mainly allocated by the central government, and domestic and foreign credit funds are rarely used for investment in geological exploration and mine construction. Now, in addition to financial funds, bank loans, enterprises' own funds, personal funds and foreign capital have all become important sources of funds, and enterprises can also broaden financing channels through various combinations and innovations of financing tools.

At the same time, with the reform and opening up of China's geological prospecting economy, foreign capital has set foot in China's geological prospecting field. In recent years, the proportion of foreign investment has been increasing, accounting for nearly 10 percentage point in 2006.

4. Raise awareness of financing risks

The state plans to invest, and all risks are borne by the government. Now it is gradually transformed into investors such as government, enterprises, banks and individuals. According to their investment share, all investors' risk awareness is greatly enhanced. When making financing decisions, enterprises should not only consider internal financial risks (or bankruptcy risks), but also consider external environmental risks, such as interest rate risks, exchange rate risks and economic fluctuations. The enhancement of risk awareness not only promotes the efficiency of capital use, but also accelerates the development of enterprises.

Second, the current problems in the construction of China's mining capital market

There are many understandings and meanings for the mining capital market. Generally speaking, the mining capital market can be understood as a specific part of the financial market, which is characterized by the specific trading conditions of various financial markets for mining financing funds, and its core is to raise and finance funds for mineral exploration and mining development. Its main participants are exploration enterprises, mining enterprises, government, individual investors and institutional investors, intermediary service agencies and so on.

At present, China's mining capital market is not mature and the market system is not perfect, which is mainly reflected in the following aspects.

(A) mining reform lags behind, and market players still need to be further improved.

The main problems of China mining capital market mainly lie in the reform and construction of geological prospecting industry. The reform of geological prospecting industry lags behind, and the geological prospecting team belongs to the government. In this way, the exploration funds can only rely on the national financial input, and the geological prospecting team is not the main body of market competition. It is difficult for geological prospecting teams to raise funds through the market like enterprises to survive and develop in the market competition. The geological prospecting "economic organization" formed under the planned economy system is difficult to become a qualified market subject under the condition of market economy because of its inherent shortcomings, and it must be fundamentally reformed. The original geological prospecting economic entities are far from the requirements of qualified market entities in terms of assets, personnel, equipment, mechanisms, etc., especially their independent investment and financing capabilities and anti-risk capabilities. Under the condition of market economy, the economic operation benefit of geological prospecting economic entities without market competition qualification can be imagined. The low economic benefit is not only unfavorable to the accumulation of internal funds, but also unfavorable to the collection of external funds.

The reform of geological prospecting economic system in China began at 1998. The state has carried out major reforms in the investment system of geological prospecting, separating the investigation and evaluation of public welfare mineral resources from commercial mineral resources exploration, and the state only invests in public welfare geological exploration. Based on the principle of "whoever invests will benefit", commercial mineral resources exploration is invested and operated by prospecting and mining rights holders, who are responsible for their own profits and losses, bear high risks and get high profit returns at the same time. The state protects the legitimate rights and interests of prospecting and mining rights holders according to law, encourages local, state-owned enterprises and institutions, collectives, individuals and foreign businessmen to invest in the exploration and exploitation of mineral resources, forms diversified investment subjects and sources of funds for the exploration and exploitation of mineral resources, and revitalizes the exploration and mining industries. But unfortunately, due to various reasons, these investors have not played their due role.

(2) The development of mining capital market is limited, and the level of trading platform is single.

1. The high debt cost hinders the development of the debt financing market.

Generally speaking, China's mining enterprises are small in scale, with low credit reliability, few items available for mortgage and imperfect financial system. Therefore, it is difficult for them to borrow money from banks, and it is also difficult to use commercial credit to raise funds. Moreover, in recent years, the degree of interest rate marketization in China has improved, but the deposit and loan interest rates have not been completely liberalized, which can not reflect the degree of loan risk, resulting in the asymmetry of loan risk and income. Banks' loans to large customers are equivalent to wholesale business, while loans to small and medium-sized enterprises are equivalent to retail business. Small and medium-sized enterprises have less loans, more transactions and complicated procedures. According to the survey, the average management cost of small and medium-sized enterprises' loans is about five times that of large enterprises. If the same interest rate is applied to loans to large, medium and small enterprises, banks certainly have no incentive to lend them. Therefore, the high cost of small business loans is not conducive to the development of debt financing market.

2. The high threshold of domestic listing restricts the development of mining securities market.

First of all, the domestic issuer's application for public offering of shares stipulates that the proportion of net assets to total assets shall not be less than 30% before the issuance 1 end of the year, and the proportion of intangible assets (excluding land use rights) to net assets shall not be higher than 20%; The total share capital of the company is not less than RMB 50 million; The part to be publicly issued to the public shall not be less than 25% of the total share capital to be issued by the company; If the share capital to be issued exceeds 400 million yuan, the proportion of share capital to be issued to the public may be reduced as appropriate, but the minimum amount shall not be less than 65,438+05% of the total share capital to be issued by the company.

Because the products of exploration enterprises engaged in economic activities are geological achievements, and geological achievements are intangible assets in accounting treatment, it is difficult to realize that intangible assets (excluding land use rights) account for less than 20% of net assets. As far as capital stock requirements are concerned, the capital stock of a single geological prospecting enterprise is below 50 million yuan. Therefore, this limits the financing of geological prospecting enterprises through the stock market.

Secondly, the Company Law of People's Republic of China (PRC) stipulates that the net assets of a joint stock limited company shall not be less than 30 million yuan, and that of a limited liability company shall not be less than 60 million yuan. This excludes more than 90% mining enterprises in China from issuing bonds.

3. Mining enterprises are overburdened with taxes and fees, and their own funds lack the ability to accumulate, which limits the development of endogenous financing.

First of all, after the reform of 1994 tax system, the main types of taxes and fees of mining enterprises in China include value-added tax, income tax, resource tax, mineral resources compensation fee, urban construction tax, land use tax, business tax, education surcharge, business tax other than resource tax and other taxes and fees. Heavy taxes and fees undoubtedly increase the burden on enterprises and reduce the total profit. As a result, the internal financing ability of enterprises is weakened. According to relevant statistics, before 1993, the tax burden of China's extractive industries was relatively light, with an average of less than 5% of sales revenue, which was lower than the national average level of industrial enterprises; After 1994, the tax revenue of the extractive industry soared, accounting for about 12% of the sales revenue, while the overall tax revenue level of the national industry was about 7%, with a slight downward trend.

Secondly, before the reform of 1994 tax system, China only levied resource tax on some minerals such as iron, oil and natural gas, and the taxation method was to calculate the profits above a certain profit amount according to a certain proportion (progressive percentage tax rate). However, after the tax system reform of 1994, the resource tax collection was changed to apply different tax rates to mining enterprises with different natural abundance, and the "specific taxation method" was adopted to collect all mining enterprises generally, regardless of whether they were profitable or not, which undoubtedly increased the burden of low-profit enterprises.

Third, the taxes and fees of mining enterprises are also concentrated on value-added tax. Before the tax reform, mining enterprises paid 3% product tax, and the value-added tax was adjusted to 13% after the tax reform. Due to the particularity of the mine, almost no raw materials are purchased, only a small amount of auxiliary materials are purchased to offset the input value-added tax, and the paid-in value-added tax is more.

Obviously, the heavy tax and unfair tax burden of mining enterprises directly result in a sharp decrease in surplus, a weakening of the self-accumulation ability of enterprises' funds and a decrease in their internal financing ability. For the construction and development of mining capital market, it undoubtedly limits the development of important sources of funds.

4. At present, China's mining capital market has a single level and needs a multi-level capital trading platform.

At present, there is no exploration investment board in China mining capital market, and there is also a lack of small and medium-sized mining enterprises board. First of all, the multi-level capital market conforms to the current mining economic structure of China. Geological exploration is the basic link of the development of mining economy. It is not only related to the development of mining economy itself, but also of great significance to the smooth operation of national economy to find out the richness of mineral resources reserves. In addition, in China's mining enterprises, small and medium-sized enterprises account for an absolute large proportion, about 99%. Therefore, the development of geological prospecting industry needs exploration plate, and the development of mining industry needs small and medium-sized enterprises plate.

Secondly, the multi-level capital market has adapted to the requirements of China's mining economic transformation. With the reform of geological prospecting economic system and the development of the industry, geological prospecting enterprises have a strong desire for financing and listing.

Thirdly, multi-level mining capital market is an important arrangement for China capital market to improve its own structure and resolve financial risks. A major problem in China's capital market is the lack of elimination mechanism, so companies can go up and down. The result is that the superior does not help, the weak do not eliminate, and the function of market resource allocation cannot be brought into play. A large number of junk stocks devour market resources and squeeze the living space of excellent companies.

Of course, the establishment of the market is only the first step, and how to operate and manage it is a bigger problem. Whether there is strict examination and assessment of listed companies is the key to the success or failure of the market. Only by doing this, investors will not become garbage workers, the stock market will not become a trash can, and the multi-level capital market in China will play a real role.

(3) Mining investment institutions are lacking, and risk exploration investment funds have not yet been established.

At present, there are hundreds of investment funds in China, but there is a lack of investment funds specializing in risk exploration. China Mining established gold fund, silver fund and oil and gas exploration fund in the last century. The gold development fund is a special fund set up by the state to support the development of the gold industry. Approved by the State Council, it was converted into the capital of China Gold Corporation and became the state-owned asset of China Gold Corporation. The silver fund no longer exists. Oil and gas exploration funds are extracted by enterprises, which are mainly used for oil and gas exploration of oil and gas enterprises, and are not real "investment funds". In recent years, the relevant departments of local governments have established different forms of exploration funds, which are not investment funds in a complete sense.

(D) Mining intermediaries are not perfect, and multi-level, wide-ranging and all-round intermediaries have not yet been established.

In the operation of market economy, intermediary service agencies are indispensable media. Without the positive role of intermediaries, it is impossible for any company to be directly listed on the stock exchange, and it is necessary to turn to intermediaries that provide professional services for listing. In fact, the listing rules of stock exchanges generally stipulate that there should be independent intermediaries to package, evaluate, recommend and guide listed companies. Although there are many intermediary agencies such as securities in China at present, few of them are involved in mining, let alone specialized intermediary securities service agencies.

Due to the slow development of China's mining capital market, the intermediary agencies serving it are immature and imperfect. The place for listing and trading of resource companies has not been established, the stock trading market of mining companies has not yet developed, there are no supporting listing rules, there are no mining professionals, and there is a lack of due supervision and protection. The status and role of mining professional associations have not been fully exerted, the comprehensive quality and knowledge level of appraisers need to be improved, the business scope, influence and authority of appraisal institutions need to be strengthened, and the appraisal software and hardware equipment need to be improved. Obviously, at present, the professional and technical intermediary service agencies involved in mines in China are still not perfect.

Third, policy suggestions for further developing China's mining capital market.

The development of China mining industry must establish a standardized capital market. The core of mining development is to do a good job in geological exploration, avoid the high risk of exploration and open up social financing channels. According to the operating rules and experience of international mining industry, establishing a mining capital market with China characteristics has become the primary task of developing China mining industry.

Developing mining capital market is not only an objective requirement of mining development, but also an important part of China's financial reform. At present, domestic mining enterprises are facing the pressure from multinational mining (group) companies and the powerful capital market behind them. The blank of mining capital market is affecting the international competitiveness of China enterprises. The problem that it is difficult for domestic mining enterprises to become bigger and stronger is precisely the lack of effective capital market and the inability to carry out industry integration. To be bigger and stronger, local enterprises must rely on mergers and acquisitions for industry integration. The premise of the smooth implementation of M&A is a healthy and effective capital market. In the three years since China's entry into WTO, China's capital market is actively integrating into the international capital market, participating in the international division of labor and sharing the benefits of international market integration. The opening of the capital market is also a realistic need in the process of China's economic reform. Therefore, the domestic capital market must innovate in ideas, tools, management systems and transmission mechanisms.

Developing mining capital market is the most important institutional measure to disperse mining risks and establish a diversified market-oriented risk distribution mechanism. At the same time, the development of mining capital market provides a market-oriented platform for mining enterprises to improve their corporate governance structure on the basis of creating various financing channels; It also provides a suitable capital expansion mechanism for the internationalization of mining enterprises, that is, setting up multinational mining (group) companies to fundamentally eradicate the economic thinking of small mine management. Moreover, the development of the capital market provides investors with free choice and good liquidity of assets and asset combinations, which is conducive to the growth of investors' wealth and the avoidance of risks.

The 16th National Congress of the Communist Party of China put forward the strategic goal of promoting the reform, opening up and stable development of the capital market, and the Third Plenary Session of the 16th Central Committee further clarified the task of capital market construction. With the release of the State Council's Opinions on Promoting the Reform, Opening-up and Stable Development of the Capital Market, the grand blueprint for the reform and development of China's capital market has been clearly presented to the world. After more than ten years of "crossing the river by feeling the stones", the capital market finally has a clear development direction and goal. Expand direct financing, improve the modern market system, give greater play to the basic role of the market in resource allocation, and build a capital market with reasonable structure, sound mechanism, perfect functions, safe operation, transparency and efficiency. According to the development direction and goal of China's capital market, the following suggestions are put forward for the development of mining capital market.

(1) Promote the shareholding system reform of mining enterprises and improve and perfect the capital market of mining entities.

Judging from the practice of implementing shareholding system and building and developing capital market in China for more than ten years, shareholding system is very important to promote the development of productive forces in China. It plays an important role in optimizing the allocation of resources, promoting the reform of state-owned enterprises, establishing a modern enterprise system, absorbing high and new technologies, adjusting the economic structure, raising more social funds and promoting the sustained and rapid development of the national economy. Therefore, geological prospecting economic entities should further deepen the reform, and set up resource (group) joint-stock companies with China characteristics according to the requirements of modern enterprise system. This is not only the requirement of developing mining capital market, but also the inevitable trend of China's economic system reform. Moreover, all exploration enterprises, mining enterprises, mineral products processing enterprises and mineral products import and export trade enterprises should adjust and reorganize their industrial structures according to their own advantages and form large-scale comprehensive mining enterprises (groups) joint-stock companies. At the same time, guide, promote and standardize the utilization of foreign capital by geological prospecting units and mining enterprises, and carry out joint-stock restructuring and transformation through joint ventures, cooperation and transfer of mining rights.

(2) Establish a multi-level trading platform for mining capital market and improve the mining capital market system.

According to the requirements of Several Opinions of the State Council on Promoting the Reform, Opening-up and Stable Development of the Capital Market, on the basis of overall consideration of the rational layout and functional orientation of the capital market, we will gradually establish a multi-level capital market system to meet the financing needs of different types of enterprises, study and establish corresponding conditions for securities issuance and listing, and establish a supporting company selection mechanism.

1. appropriately lower the listing threshold of mining companies and improve the listing system of mining companies.

Relevant departments should speed up the research and formulation of special terms for domestic listing of mining companies and reduce the requirements for listing conditions of mining companies. To study and formulate the differences between the general terms of listing of mining companies and non-mining companies, the special terms of listing of mining companies, the report of listed resource reserves of mining companies and its review and release, and the disposal of mining rights assets. Strengthen and improve the supervision and management functions of securities management departments, stock exchanges and financial investment institutions in formulating mining financing policies and rules and listed mining companies. Formulate special terms and differential requirements for overseas listing of resource enterprises and mining enterprises, and support and encourage them to raise funds in the international mining capital market. Encourage mining companies to issue bonds in the international capital market.

2. Establish an exploration capital market.

Promote the establishment of exploration capital market, study and formulate listing conditions for resource enterprises, select pilot projects, and open up exploration capital market. Through the analysis of the operating mechanism and lessons of foreign mining capital development, the key to establishing the exploration capital market is to establish the "export" mechanism of venture capital. An important step to establish a feasible exit mechanism of exploration capital is to establish a "risk exploration capital market". From the perspective of supporting China's geological prospecting enterprises and small and medium-sized mining enterprises, the "second board market" will provide fertile ground for mining investment.

3. Actively broaden the sources of mining capital.

Encourage and support banks and other financial institutions to provide financing services for mineral resources exploration and development. Encourage commercial banks, especially national policy banks, to provide guarantees and loans for mining project financing. Encourage policy banks to support the development of enterprises that meet the national industrial policies, important minerals and good economic benefits within the existing business scope. Expand the floating range of loan interest rates for exploration enterprises, resource enterprises and mining enterprises. Actively research and develop credit service projects suitable for the development of mining enterprises, and further improve the financial services provided by banks to exploration enterprises, resource companies and mining (enterprise) companies, such as settlement, financial consultation and investment management. Encourage social and private investment, explore the establishment of venture exploration investment companies, as well as the management model and exit mechanism of venture exploration investment funds. Strict market access and qualification management of risk exploration investment, standardize the market behavior of risk exploration investment, and give full play to the guiding role of the government in risk investment.

(1) Establish a mining investment fund. It is necessary to establish various government exploration investment funds and special mining investment funds. It is necessary to allow other investment funds to enter the mining capital market and establish a supplementary exploration investment system dominated by commercial exploration funds.

(2) Developing institutional investors. Encourage the establishment of mining investment companies to engage in specialized mining investment activities, making them one of the main sources of mining investment funds. This is an important channel to open investment funds.

(3) Make active use of foreign mining capital markets. Following market rules and international practices, qualified mainland resource companies and mining companies should actively strive for overseas issuance and listing of securities.

(3) Establish and improve intermediary institutions.

1. Improve the mining evaluation system and establish various geological consulting services.

Introduce the "qualified person" system to speed up the integration of mining right evaluation with international practices, including the legal licensing system for entering the market, the market subject, market supervision, and the management system for maintaining market fairness and order. Vigorously cultivate and improve the professional association of mining right evaluation, establish cooperative relations with the same industry abroad, strengthen the communication and exchange of technical specifications and methods, expand the international recognition and influence of the evaluation industry on the international stage, and provide high-quality technical consulting services for financing of domestic and foreign mining companies. Strengthen and improve the supervision measures for evaluation institutions and evaluation personnel. Strengthen the professional training of professional appraisers and improve their comprehensive quality, and advocate the use of new technologies and methods, especially the popularization and application of computer software and the visualization of evaluation results. Establish various geological consulting service institutions and give full play to their positive role in mineral resources exploration. Strictly handle the authenticity and scientificity of the listing prospectus, quarterly report and annual report of resource companies.

2. Improve the accounting system and accounting service system of mining rights assets.

Establish special mining accounting standards in accordance with international practice, conduct accounting treatment and prepare financial statements in accordance with mining accounting standards (following international practice), and increase the transparency of financial statements of mining enterprises. Accelerate the training of specialized accountants who serve the mining industry and improve the professional quality and professional ethics of employees. Establish a special accounting consulting agency to serve the mining industry and strengthen the supervision and management of accounting personnel. Establish mining accounting association to strengthen industry self-discipline. Accelerate the construction of mining accounting legal system.

3. Strengthen the construction of other intermediary service institutions.

Develop investment consulting institutions and credit rating agencies for listing resource enterprises and mining enterprises, strengthen the management of accounting firms, law firms and asset appraisal institutions, and improve the professional service level of intermediary institutions.

(D) Give full play to the role of the government

The government's support for exploration mainly includes two aspects: one is direct, such as tax incentives and providing exploration subsidies; The second is indirect, such as improving the country's political and economic environment. To sum up, there are mainly the following aspects.

1. Provide preferential tax policies

In foreign countries, many governments have formulated preferential tax policies for mineral resources exploration and development, especially the tax treatment for exploration and development expenditures (accelerated depreciation, capitalization, amortization, etc.). ) and loss subsidies to reflect the time value of taxes. These concessions have played a positive role in reducing the effective tax revenue of mining companies.

2. Establish exploration subsidy fund.

As a part of national venture capital, exploration subsidy plays the role of seed capital. This policy has been implemented in Canada, Australia and other countries, such as the incentive plan for overseas mineral exploration in the Federal Republic of Germany. The implementation of exploration subsidies is not only beneficial to the exploration project itself, but also beneficial to other social funds to invest in exploration projects.

3. Provide guarantee and loan discount for enterprise loans.

In some countries, in order to enable mining enterprises to obtain loans from commercial banks or low-interest or interest-free loans from the World Bank, the government has also stepped forward to provide guarantees to make it easier for them to borrow. For example, if a Japanese company mines abroad and lends money to domestic financial institutions (the central bank and the Export-Import Bank), the metal enterprise group will come forward as a guarantor and charge a guarantee fee of 0.4%.

4. Improve the legal system of the capital market and strengthen the construction of integrity.

According to the objective requirements of developing China's mining capital market, we should improve the legal system conducive to the stable development of the capital market and the protection of investors' rights and interests. Clean up administrative regulations, local regulations, departmental rules and policy documents that hinder market development, and create a good legal environment for vigorously developing China's mining capital market. In accordance with the requirements of improving the social credit system of the modern market economy, we will formulate the credit criteria of the capital market, maintain the credit order, and resolutely implement market ban measures for institutions and individuals who violate laws and regulations and are seriously untrustworthy.

Brief introduction of the author

[1] Su Xun, director and researcher of the research office of China Institute of Land and Resources Economics.

[2] Fang Min, deputy director and researcher of the Research Office of China Institute of Land and Resources Economics.

[3] Gan Fei, Associate Research Fellow, China Institute of Land and Resources Economics.