On March 28, the General Office of the National Development and Reform Commission issued the "Notice on Further Doing a Good Job in the Coordination of Social Capital Investment and Financing Cooperation", emphasizing that more qualified stock projects should be promoted to issue infrastructure REITs and open up investment exit channels. Priority should be given to supporting existing projects with sustainable profitability to carry out public-private partnership (PPP). Effectively prevent new hidden debts of local governments.

In order to promote the docking of key projects, the "Notice" requires that all localities should promptly summarize the investment projects that have the willingness to connect investment and financing, and screen out the investment projects that have a strong driving effect on local economic and social development, meet national policy requirements, have a certain level of income, and have relatively low conditions. For mature key projects, a list of investment and financing docking projects will be formed. It is necessary to formulate specific investment and financing docking plans according to the characteristics of different projects, clarify the encouragement and support policies, enhance the pertinence of work, and make preparations for project docking.

For investment projects included in the investment and financing docking list, it is necessary to give full play to the strength of professional consulting institutions, make in-depth and detailed investment and financing plans, and improve docking efficiency. It is necessary to actively recommend key projects with capital gaps to equity investment institutions, government industrial investment guidance funds, etc., guide and strengthen equity financing, and encourage investment and loan linkages to support project construction. It is possible to build a platform that is conducive to the communication and connection of all parties through project matchmaking meetings and other means, to promote key projects to financial and investment institutions, and to strive for financing support. For projects with strong demonstration significance and guiding role, and relevant parties have a strong willingness to advance, it is necessary to focus on guaranteeing, strengthening support, closely following up, regularly scheduling, coordinating and solving key problems, implementing various construction conditions, and promoting the smooth implementation of the project.

In terms of revitalizing stock assets, the "Notice" emphasizes that it is necessary to promote more eligible stock projects to issue infrastructure REITs, open up investment exit channels, and increase the enthusiasm of enterprises to participate in infrastructure construction. Priority should be given to supporting existing projects with sustainable profitability to carry out PPP, giving full play to the professional advantages of social capital, and improving project operation efficiency. For new projects that revitalize the stock and recover capital investment, it is necessary to strengthen the connection of investment and financing cooperation, encourage financial institutions to increase support, promote the acceleration of the preliminary work of the project, and promote the construction of the project as soon as possible.

"The promulgation of the "Notice" will play a positive role in the implementation of the project." Jin Yongxiang, chairman of Dayue Consulting, said that compared with other types of projects, PPP projects have a long pre-work time and relatively sufficient preparation. If they can get policy support, they can Start construction sooner and form effective investment. In particular, PPP projects involving private capital, with the support of policies, can help financial institutions to dispel their concerns.

Article source: China Securities Journal

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