China unveils measures to enhance capital fund management of investment projects
China has introduced a slew of measures to further optimize the capital fund management of fixed-asset investment projects to promote effective investments and prevent risks, according to a circular issued by the State Council.
China encourages the raising of capital funds for major investment projects in accordance with the law and regulation, according to the document signed by Premier Li Keqiang.
The minimum proportion of capital contribution for some infrastructure projects will be lowered as appropriate, with that of port, coastal and inland waterway transport projects to be cut from 25 percent to 20 percent, it said.
For infrastructure and other projects enjoying government encouragement, capital funds can be raised through the issuance of financial instruments with their proportion being no more than 50 percent of the total amount.
Meanwhile, the country will enhance the management of the field and intensify the prevention of risks.
The raised capital funds should not increase the implicit debts of local governments in violation of regulations and related requirements on the asset-liability ratio of state-owned enterprises, according to the document.