At the financing end, in addition to the three policy banks, the state-owned big banks have also increased the financial support for major projects in the near future, and relaxed the loans for major infrastructure projects. For example, the proportion of project capital can be the minimum capital proportion of the industry; if the project procedures are not complete, some early loans can be issued. The logic lies in the decline of new loans in the residential sector affected by the epidemic, and the lack of high-quality assets in banks.
March into new infrastructure projects
Under normal circumstances, construction workers will return to work all over the country after January 16, so the impact of the epidemic on the infrastructure sector is not particularly great. In the middle of March, the return rate of the construction site has reached 80%. By the end of this month, it will reach 90%. The rate of workers arrival is relatively high. East China province, a city investment company said.
Traditional infrastructure projects are still the driving point of urban investment companies. The vice president of a county investment company in the central province said that during the outbreak, the projects under construction were still affected. At present, the companys investment plan is steadily completed, mainly including some road network construction and supporting infrastructure construction left over from the past. However, the financing plan will increase compared with the previous year.
According to the above-mentioned Minister of urban investment and Financing Department of prefecture level cities in central provinces, the company has applied for some projects, mainly in the fields of warehousing and logistics, taking advantage of the current loose policy. It used to be difficult to finance such projects, but now its encouraged by policies, so its easier to finance projects, but we will also avoid increasing the scale of investment. After all, its also necessary for companies to find ways to repay their debts.
Some urban investment companies also plan to enter the new infrastructure sector. According to the project plan of urban investment of a county in Hebei Province obtained by the 21st century economic report reporter, the county requires to plan and package a batch of projects that can be declared on the top, can be invited to the outside and can be implemented on the inside. The county has declared two projects.
One of the projects is the construction of social welfare pension center, and the other is 5g communication and digital industry economic project. The latter belongs to the category of new infrastructure construction, with an estimated investment of 1.25 billion yuan. It is planned to apply for financing through CDB. The project specifically includes the construction of all 5g base stations and communication networks, data centers and big data industrial parks in the county, as well as the application of 5g in smart city, industry, agriculture, transportation, etc.
A city investment company in South China said it is currently working on a smart city project, including more than 10 subprojects such as cloud computing center, social comprehensive governance center and big data resource center. The whole construction cycle is about 11 months, and construction started in August last year. The person said.
Marginal relaxation of bank loans
Financing for infrastructure projects has also picked up. After the outbreak, the three policy bank branches and the provincial development and Reform Commission jointly issued documents calling for the promotion of financing in major project areas. Since the middle of March, several branches of large state-owned banks have issued similar documents. The head of the company Department of a state-owned big bank Northern Province Branch said.
According to the documents obtained by the reporter, in late February, China Development Bank, agricultural development bank and export import bank set up 60 billion, 30 billion and 30 billion special funds respectively to support the construction of key projects in the province and the financing needs of medical material enterprises.
By the end of March, the branches of local state-owned big banks had also joined the ranks. CCB, ICBC and ABC set up a total of 170 billion special credit funds to respond to the epidemic and promote the resumption of work, supporting the construction of key projects and major epidemic prevention and control projects in the province.
Among them, the loan conditions of the project have been relaxed. For example, according to the financial service plan of a large bank, in view of the incomplete procedures of some key projects, 30% of the total investment of the project can be used to verify the pre project loans of no more than three years. The plan also said that priority should be given to supporting the construction of key infrastructure projects in the fields of highway, railway, urban rail transit, power, gas, etc., and the minimum capital ratio of the industry should be implemented for the project capital.
The so-called capital system is that investors pay their share of capital contribution in advance according to a certain proportion of the total investment, and the rest of the investment project capital is guaranteed by registered capital, which is obtained by the investment legal person through financing means facing the society.
At the national regular meeting held on November 13 last year, it was proposed that the minimum ratio of capital can be appropriately reduced by no more than 5 percentage points (previously 20%) on the premise that the investment return mechanism is clear, the income is reliable and the risk is controllable for the infrastructure projects of roads, railways, urban construction, logistics, ecological environmental protection, social livelihood and other aspects to make up the shortcomings. In other words, if projects such as roads and railways meet the above requirements, the capital ratio can be as low as 15%.
A person from the Credit Department of the head office of a joint-stock bank said frankly that under the capital system, the enterprises own capital is less, which means more debt financing. Just like buying a house, if the down payment is less, the risk of bank loan will be great.
Bank funds have a great support for indemnificatory housing projects and rail transit projects. Recently affected by the epidemic, the State encourages large-scale infrastructure projects and further relaxes financing. Said the person of the city investment company in East China province.
No new implicit debt is still the red line of loans. The financial service plan of the above-mentioned big banks also calls for strict implementation of regulatory policies, proper arrangement of debt resolution in the list of implicit debts of the Ministry of Finance on the premise of no new implicit debts of local governments, strengthening the selection of regions and projects, and selective replacement.
Source: responsible editor of 21st century economic report: Chen Hequn, nb12679