The most popular trillion yuan of special construc

2022-07-25
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Trillion special construction bonds will solve the thirst for capital of basic construction projects

trillion special construction bonds will solve the thirst for capital of basic construction projects

China Construction Machinery Information

recently it was reported that the national development and Reform Commission plans to issue long-term special construction bonds to the postal savings bank through the National Development Bank and the agricultural development bank to establish a special fund for infrastructure construction. At present, all localities are actively reporting appropriate projects. Hebei, Henan, Inner Mongolia and other places have deployed the project application work

steady growth and structural adjustment are combined to limit the scope of investment

it is understood that the first batch of special construction bonds will be launched in the near future. The scale of this batch of special construction bonds used to supplement the capital of local construction projects is about 200billion yuan for CDB and 100billion yuan for IFAD, with a total scale of 300billion yuan. The total scale may reach trillion in the future. The central government will offer 90% discount interest on special construction bonds

the above officials told the analysis that this move is to promote the construction of projects under construction. If the reported projects are supported by special construction bond funds, it will directly promote the progress of the project

the investment fields of this bond issuance include five categories and 22 fields. Among them, the five major categories include: relocation of poverty alleviation and other "three rural" construction; Urban infrastructure construction such as rail transit; Central and Western railways and other major infrastructure; Livelihood improvement and other construction projects; Strengthen the core competitiveness of the manufacturing industry and other transformation and upgrading projects

previously, the national development and Reform Commission launched seven major engineering packages, including information, electricity, oil and gas, clean energy, oil and gas and mineral resources, grain and water conservancy, transportation, ecological environmental protection, and health care for the elderly. This year, it added four engineering packages, including urban rail transit, modern logistics, emerging industries, and enhancing the core competitiveness of the manufacturing industry. The investment projects in the above 22 fields are also basically concentrated within the scope of the eleven strategic engineering packages

Huchi, a researcher at the research center of the state owned assets supervision and Administration Commission of the State Council, said that because the scope and principle of capital investment have been clearly defined, this special construction bond should be understood as a supporting measure of the national eleven strategic investment packages, rather than a "strong stimulus". Through this innovation of financial instruments, funds can flow to the physical fields that promote effective investment, which not only connects the junction of fiscal policy and monetary policy, but also plays a composite role of stabilizing growth and adjusting structure

lihuiyong, chief macro economist of Shenyin Wanguo, said that the above policies were issued in a timely manner and the direction was clear to all friends. Because the Politburo meeting has just deployed, we should attach great importance to the risk of economic downturn and keep the bottom line of financial risks. In the current situation, such as the belt stripping force experimental machine, the pressure of economic downturn is large and the demand is weak, so the government needs to implement the policy of ensuring growth through the system. In view of the current shortage of local funds, it is a good measure to issue long-term bonds by policy banks as capital to drive social funds to ensure growth

is equivalent to low interest loans, and the requirements are strict.

"all systems such as housing construction and transportation are reporting projects, and we are summarizing them and reporting them before August 8." A State-owned Assets Department official in a county in the East told me

the official said that generally speaking, the minimum capital ratio of fixed asset investment projects in various industries is mostly 20%~25%. Under normal circumstances, the project capital needs to be paid by the finance. But now there is no money in the budget, the project capital is insufficient, and the financial institutions do not finance, so some projects cannot start

in the first half of this year, the national general public budget revenue increased by only 4.7% in the same caliber, a new low in recent years, and the income of five provinces is now in negative growth

"but now the special construction bonds provide the project capital with an interest of 0.5%~1%, which is basically equivalent to low interest loans. Moreover, the bond term is long, usually 8 to 10 years, or even longer. In addition, the project can continue to be financed through other channels. This is equivalent to solving the problem of project capital and directly promoting the progress of the project." The official said

however, the project supported by the special construction bond has strict requirements. In addition to limiting the investment field of bond issuance, the national development and Reform Commission also requires that bond issuance shall not be used for non-profit projects or market-oriented projects with high rate of return. "In addition, the catalogue requires the project investment scale to be more than 1billion yuan." The official said

liqilin, a fixed income researcher at Minsheng securities, said that the space for increasing the deficit ratio and adding new local bonds. Jilin Province has limited incremental incentive space brought about by stopping production and sales and providing one-time non degradable plastic shopping bags and plastic tableware issuance quota, while banks' risk appetite is not strong. In addition, PPP financing costs are high, mostly above 10%, social capital is not enthusiastic, and the level of urbanization funds is limited, Therefore, in order to stabilize economic growth, we can only launch new special financial bond instruments, and special financial bonds are traded in the inter-bank market, which provides space for monetary policy to support stable fiscal growth

the focus is on solving the funding gap of strategic projects

in the first half of this year, the state launched a large number of strategic investment projects. However, according to the investment data released by the National Bureau of statistics, the planned total investment of new projects is 19193.6 billion yuan, an increase of 1.6%, which is lower than the growth rate of the planned total investment of all construction projects. One of the important reasons is that the local implementation work needs to be strengthened and the shortage of capital sources

in the first half of the year, China's investment in fixed assets reached 26150.7 billion yuan, a year-on-year increase of 6.3%, of which the national budget fund increased by 18.6% and the growth rate increased by 8.3%. However, the capital from domestic loans in fixed asset investment still decreased by 4.8%. The state's control over local overall debt also made it difficult for local governments to supplement the capital of investment projects through conventional channels in the past

project capital is the premise for the start of the whole project, and also the prerequisite for obtaining bank loans. According to the notice of the State Council on adjusting the capital of fixed asset investment projects, which is equivalent to: Aluminum Profile: 24 ~ 110hre copper alloy: 60 ~ 90 HRF gold ratio, issued in 2009, the minimum capital ratio for iron and steel, electrolytic aluminum projects is 40%; For cement projects, the minimum capital ratio is 35%; For coal, calcium carbide, ferroalloy, caustic soda, coke, yellow phosphorus, corn deep processing, airport, port, coastal and inland navigation projects, the minimum capital ratio is 30%; For railway, highway, urban rail transit and chemical fertilizer (excluding potash fertilizer) projects, the minimum capital ratio is 25%; The minimum capital ratio of affordable housing and ordinary commodity housing projects is 20%, and that of other real estate development projects is 30%; The minimum capital ratio of other projects is 20%

therefore, this special bond aims at the "seven inches" of investment problems and specifically solves the problem of capital. It is understood that the funds for this bond issue are required to be invested in projects that are relatively mature in terms of project approval, land, planning, environmental assessment procedures, etc; Projects with high expected returns and a good overall grasp that can be started in the second half of this year or the first half of next year, and projects under construction that have started construction but still have a gap in capital contributions to be borne by the government

there are changes in the policy ideas for accelerating local implementation

lihuiyong analyzed that when using the funds, we should pay attention to the key investment direction, and in the short term, we can choose the fields with quick results and sufficient preparation in the early stage. For example, the underground comprehensive pipe gallery, new energy, railway, rail transit, environmental protection, as well as the transformation of shanty towns and old cities are the focus of the industry. In terms of regions, we will focus on supporting Hebei, Northeast China, Xinjiang, Tibet and Shanxi, which experienced slower economic growth in the first half of the year

the above policies also reflect the optimization of the central government and the State Council for promoting local implementation in the second half of the year, that is, we should not only accelerate local implementation, but also provide channels to facilitate local implementation of policies

the commentary published on the front page of the people's daily on the 5th directly pointed out that, "Whether a policy is good or not depends on whether it is effective. To improve the quality of policies, first, we should pay attention to classified guidance and enhance the pertinence of policies. One prescription can not cure all diseases. Second, it should be easy to understand and operational. When formulating policies, we should think more from the perspective of the implementer and implementer. Third, we should take more small and practical policy measures to make small victories into big victories. The most important thing is to achieve practical results."

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