New measures to manage investment project funds
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.
Li yesterday also called for efforts to take the opportunity of implementing the regulation on improving the business environment to further create a market-oriented and law-based business environment.
More efforts should be made to solve problems of various market entities in investment and operation, according to a statement released after a State Council executive meeting chaired by Premier Li.
The State Council has made public a regulation on optimizing the business environment, which will become effective on January 1, 2020.
Improving the business environment aims to unleash productivity and enhance competitiveness, and it is an effective measure to enhance market vitality, stabilize social expectations, cope with downward pressure and promote development and employment, according to the statement.
The meeting urged all regions and departments to introduce supporting measures and speed up elimination and revision of rules and regulatory documents that do not comply with the new regulation.
The meeting stressed the need to follow the requirements of the regulation and continue to streamline administration, delegate power, improve regulations and upgrade services.
A slew of measures will be taken, including further streamlining the examination and approval process and lowering the threshold for market access.
There will also be measures to reduce business-related charges, promote fair competition among businesses under diverse ownership, and improve government services.
(Xinhua)