Private Financing: Policy Research on Expanding Private Investment
How is private investment expanded? What do you know about the relevant policies in recent years?
(1) Broaden the channels for private capital to enter
1. Establish a joint-stock company or a limited liability company
The establishment of a standardized project management company is a private The basic form of capital entering the construction field. Depending on the nature of the project, private funds can enter to varying degrees. For some competitive and profitable operating projects, corporate reform is generally implemented, allowing private funds to enter in the form of holdings; quasi-operating projects are allowed to enter in the form of relative holdings; and those projects related to major areas of the national economy and people's livelihood are allowed to allow private funds to enter in the form of holdings. Enter through equity participation. For enterprises that cannot be restructured as a whole, methods of classification and decomposition should be adopted to gradually realize corporate restructuring. At the same time, establish a strict corporate governance structure. The government will no longer carry out administrative intervention in enterprises in the construction field, realizing the transformation from direct government management and control to indirect regulation.
2. Promote the transfer of project management rights
As a convenient channel to attract private funds into the construction field, the transfer of project management rights can not only revitalize the existing assets of infrastructure, but also promote the development of the infrastructure sector. Taking the road of market-oriented financing can also promote the breaking of monopolies, trigger new competition mechanisms, and improve the quality and efficiency of infrastructure services. Currently, it can be said to be a breakthrough for private funds to enter the infrastructure field. In order to solve the problems existing in the operation, it can be considered to have a comprehensive department take the lead in this work, formulate standardized operating rules, clarify relevant aspects such as property rights, asset evaluation, approval procedures, transfer contracts, transferee qualifications, etc., and issue at the same time Corresponding support measures include financial compensation systems, supporting financing support systems, etc. In actual operation, the transfer project plan will be formulated according to the nature of the completed projects, with the easy ones first and then the difficult ones, and launched in an orderly manner. The government will make its commitments in accordance with the law and honor the returns for projects that transfer operating rights.
3. Actively use the domestically funded BOT method
For some large-scale infrastructure projects with large investment amounts, it is a more scientific way to construct and operate through the BOT method. According to the 15th Five-Year Plan project development plan, we can consider launching a number of major infrastructure projects through public bidding and selecting owners. As the main body of decision-making, the government clarifies the requirements, return expectations and supervision responsibilities for project investment and construction. Shanghai and Fujian have already had successful practices in this regard.
(2) Promote market-oriented financing of private investment
1. Expand the scale of corporate bond and stock issuance
Support qualified enterprises of various ownerships to use issuance Construction funds are raised through corporate bonds and public issuance of A, B, and H shares. Allow new project companies to use bond issuance funds as an effective supplement to construction funds, and explore effective ways for the flow of corporate bonds, including corporate bond listings and over-the-counter transactions. Encourage enterprises to carry out reasonable cross-regional and cross-department asset reorganization, and support enterprises to choose appropriate methods such as direct listing, shell purchase or backdoor listing to achieve direct financing purposes. At the same time, we actively create conditions to promote the reasonable flow of corporate property rights. 2. Try to establish various types of industrial investment funds
Industrial investment funds are another effective channel to attract private funds for investment and construction. Under the premise of national policy permission, select some financial institutions with relevant knowledge and experience to jointly initiate the establishment of industrial investment funds in transportation, energy and other types with industrial enterprises with strong strength, good operating performance and rich investment management experience. Entering the construction field through equity investment.
(3) Implement fair and reasonable fiscal and taxation policies
Implement fiscal policies that actively guide private investment and allow fiscal funds to be directly invested in private investment in the form of state-owned capital participation or compensation. Investment-based projects will be treated the same as state-owned enterprises in allocating economic construction funds. Within the framework of public fiscal expenditures, we will increase fiscal interest discounts and adopt different interest discount policies based on different project natures and project contents to form a provincial, municipal, and county fiscal linkage effect to enhance the enthusiasm for private investment.
In the current situation where the prices of infrastructure products are not yet fully in place, it is possible to consider establishing a financial compensation fund to provide appropriate compensation for the difference between the price with a reasonable profit level and the actual price to ensure that investors receive reasonable investment returns. Standardize the collection of taxes and fees on private investors and resolutely stop unreasonable charges on private investment enterprises. Private investors should also enjoy all the tax reduction and exemption policies enjoyed by state-owned enterprises and foreign-invested enterprises. For projects involving private capital investment in industries encouraged by the state, corresponding discounts may be considered in terms of enterprise fixed asset depreciation, new product development entry costs, reduction and exemption of infrastructure supporting fees, land transfer fee installments and land prices.
(4) Improve the credit support system
First of all, local financial institutions should eliminate ownership discrimination against non-state-owned small and medium-sized investors, and formulate loan policies and management methods suitable for the characteristics of private small and medium-sized enterprises. , providing flexible and diverse credit services. Secondly, establish a multi-level loan guarantee system and encourage the establishment of credit guarantee institutions that provide financing services for private investment projects. Its funding sources can be mainly financial funds, supplemented by membership fees paid by member companies, while absorbing social donations and establishing risk compensation funds. Withdrawal system ensures the normal operation of credit guarantee institutions. Try loan credit insurance, promote various project insurance, business insurance, and diversify bank risks. Third, improve the property mortgage system, increase the types of loan mortgages suitable for the development of private enterprises, and appropriately raise loan mortgage standards. Promote innovative credit methods such as preservation warehouse business, export tax rebate pledge business, accounts receivable pledge or acquisition business, guaranteed payment agency business, joint guarantee agreement business, etc., to solve the problem of loan financing difficulties of private small and medium-sized enterprises. Fourth, vigorously develop small and medium-sized financial institutions. Support the establishment of small and medium-sized financial institutions corresponding to private investment entities, relax the funding sources of financial institutions, and allow private capital to participate in shares. These financial institutions should focus on private investment entities as their main service targets. In addition to strengthening their supervision, they should also expand their interest rate floating range and allow their deposit and loan interest rate spreads to be higher than other commercial banks, playing a supporting and guiding role. Fifth, actively explore financial innovation methods such as asset securitization. Asset securitization refers to a financial behavior that converts the property rights, (certain period) use or income rights of illiquid assets into marketable interest-bearing securities through investment banking means. It changes the relationship between the entire asset subject matter from directly owning the property rights of the assets to owning equity or claims of equivalent securities, and realizes the flow of property rights through the flow of securities. The use of asset securitization can effectively solve the illiquid assets and project financing problems of infrastructure.
(5) Formulate scientific and reasonable service (product) prices
Effectively reform the existing price management system, rationalize the price system of public products and services, and form a government macro-guidance market pricing model. Depending on the nature of the project, several different pricing methods are adopted. First, for purely operational infrastructure projects, the winning bidder as an investor can submit a price list based on its operating cost estimates plus appropriate profits to the competent government department for approval. The public, as users, participates in the price review and adopts the form of a hearing. The government acts as the supervisor to carry out review and approval. That is, the three-combination pricing method of enterprise quotation, government price verification and public negotiation. Second, for quasi-commercial infrastructure projects, the government provides appropriate subsidies or policy advantages and conducts external bidding. The procedures are similar to those for purely commercial projects, from enterprise quotation, government price verification to public negotiation and then pricing. In the future, Then gradually transition to the state canceling subsidies, and all prices will be borne by consumers. Third, non-profit projects invested by the government are formulated uniformly by the government, but conditions can be created to gradually transition from non-business projects to business projects by formulating an appropriate price mechanism.
(6) Develop intermediary service organizations and strengthen information communication
In order to solve the blindness of private investment and avoid problems such as low-level duplication of construction, it is necessary to establish standardized market information guidance Mechanism to guide private investment to find suitable investment directions and projects, especially to guide private funds to invest in infrastructure.
When attracting investment, the government discloses project investment procedures, standardizes operating methods, and regularly publishes recent investable projects, supporting policies and measures, as well as related planning requirements, facility standards, etc. through the Internet, news media, promotion meetings, etc. , promote it to the society for private investors to choose, use public bidding to select investors, and give social investors a transparent investment space.
(7) Implementation of industry-specific policies
It is very important to introduce different special policies based on the characteristics of different projects in various industries. Due to the huge differences, we can only put forward some principled opinions here:
1. Urban infrastructure
(1) Water plants and sewage treatment. Considering that the construction of the pipeline network is difficult and the investment is high, it is recommended to separate the factory and the network. The pipeline network will still be invested by the finance or state-owned investment company, and the operation of the pipeline network will be entrusted to the municipal company or other related enterprises. The government will sign an entrustment operation contract with the operating enterprise to stipulate the relevant responsibilities. and obligations and government subsidy standards. (2) Garbage disposal. For waste-to-energy generation, the power department must purchase the full amount and the price will be favorable. At the same time, we strive to provide tax incentives to the environmental protection industry.
2. Medical institutions
Private capital investment in the medical industry can be divided into two categories: non-profit and for-profit. Non-profit institutions charge prices guided by the government and do not pay taxes, but the government should be committed to providing the same policy subsidies as other public medical institutions. For-profit institutions should operate independently, service prices should be liberalized, and the government should not subsidize them, but they should be allowed to be included in the designated scope of publicly funded medical care (or medical and social insurance). Taxes are required, but tax benefits may be given in the early stages of establishment.
3. Education and cultural undertakings
Private funds invest in the construction of logistical service facilities for educational and cultural institutions, and enjoy the supporting facilities of public enterprises and institutions in terms of land acquisition, water and electricity facilities, tax exemptions, etc. Relevant preferential policies for the project. Privately invested for-profit schools and kindergartens in the non-compulsory education stage have their own fee standards, but the pricing basis must be submitted to the price department for filing. The same applies to privately invested in for-profit cultural undertakings. This type of investors is allowed to obtain an investment return slightly higher than the bank loan interest rate for the same period, and investors are allowed to recover investments other than registered capital year by year. For privately invested schools in the compulsory education stage, the charging standards should be determined by the price department as the maximum price or guide price, and the school can set its own price within this allowed range. Private investment in non-profit educational and cultural facilities should be in the form of private subsidies, and the government should provide financial subsidies corresponding to the investment projects.
4. Transportation facilities
Adopt the policy of franchise and fixed-term charging. Due to the large scale and long construction period of projects such as high-grade highways and large bridges (tunnels), the toll rights for passing vehicles should first be approved and the operating period should be given a slightly longer period to facilitate project financing for enterprises. For traffic projects with relatively few passing vehicles, a minimum rate of return can also be promised, and the difference will be subsidized by the finance. The government and government investment companies should assist investors in financing guarantee work. On the premise of complying with the plan, it is allowed to hold gas stations, car washes, service areas, and storage areas along the highway, and certain plots on both sides of the road are designated to give priority development rights. The government should further open up the business areas related to transportation facilities (such as highway maintenance, dock repair, highway greening maintenance, etc.), rationalize the transportation management system, improve relevant laws and regulations, and promote the openness and socialization of transportation supporting services.
5. Civil Affairs Welfare
The land for civil welfare construction such as nursing homes and elderly paradises is allocated administratively, and the government will provide appropriate funding to ordinary nursing homes in the community; they are allowed to be established for the rehabilitation of the elderly and general welfare. Medical service institutions provide diagnosis and treatment and provide appropriate external services. Community nursing homes and elderly paradises follow government-guided prices, while high-end nursing homes set their own charging standards and report them to the price department for filing.
6. Water conservancy projects
For the power generated by reservoirs, the power department must purchase the full amount; for irrigating farmland, appropriate irrigation fees can be collected from farmers, and the standards should be reported to the price department for approval; water supply to cities and rural areas , the water price is determined by the project enterprise and the water plant or user unit. The reclaimed tidal flats can be developed by themselves or transferred to other units for development, and the land use period can be slightly longer. ;