Notice on Adjustment and Perfection of Capital Funds System of Fixed Assets Investment Projects

Postdate: 2016-11-09

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


In order to further solve the problem of financing difficulties in current major public and public investment projects, increase the supply of public goods and public services, make up shortfalls and increase stamina, expand effective investment demand, promote investment structure adjustment and maintain steady and healthy economic development, Decided to invest in fixed assets investment capital system to adjust and improve. The relevant matters are hereby notified as follows:


1. The proportion of the minimum capital of the fixed assets investment projects in each industry shall be implemented in accordance with the following provisions.


Urban and transport infrastructure projects: urban rail transit projects from 25% to 20%, port, coastal and inland waterways, airport projects from 30% to 25%, railway, highway projects from 25% to 20%.


Real estate development projects: affordable housing and general commodity housing projects to maintain 20% unchanged, other projects from 30% to 25%.


Overcapacity projects: iron and steel, electrolytic aluminum project to maintain 40% unchanged, the cement project to maintain 35% unchanged, coal, calcium carbide, ferroalloy, caustic soda, coke, yellow phosphorus, polysilicon project to maintain 30% unchanged.


Other industrial projects: Corn deep processing projects from 30% to 20%, chemical fertilizers (except potassium) project to maintain 25% unchanged.


Electricity and other items to maintain 20% unchanged.


2. Major construction projects such as urban underground comprehensive corridor, urban parking lot project and nuclear power station approved by the State Council may be appropriately reduced on the basis of the stipulated minimum capital ratio.


Third, financial institutions in the provision of credit support and services, we must adhere to an independent credit review, and effectively guard against financial risks. According to the borrower and the actual situation of the project, in accordance with the provisions of the national capital system requirements, the authenticity of capital, investment income and loan risk to conduct a comprehensive review and assessment, insist on risk control, commercial sustainability principles, Loans and the specific number and proportion of loans. For industries with serious overcapacity, financial institutions shall strictly implement the relevant provisions of the State Council on Guiding Opinions on Resolving Contradictions of Serious Overcapacity (Guo Fa [2013] No. 41).


Fourth, since the date of issuance of this notice, all the fixed asset investment projects that have not yet been approved for feasibility study report, approved project application report, filing formalities, and fixed assets investment projects that have not been borrowed by financial institutions shall be implemented in accordance with this Circular. If a fixed asset investment project that has already gone through relevant formalities but has not yet started construction is carried out with reference to this Circular. Fixed asset investment projects with relevant financial institutions have been executed in accordance with the original contract.


Fifth, the state will be based on economic development and macro - control needs, timely adjustment of the minimum capital investment in fixed assets ratio.


This Notice shall come into force as of the date of issuance.


The State Council

September 9, 2015