State Council adjusts ratios for fixed-asset investment projects
To further alleviate funding difficulty in public projects and areas related to people’s livelihoods, the State Council has decided to fine-tune the capital system for fixed-asset investment projects.
Changes were made regarding the minimum capital ratio of fixed-asset investment projects in various industries.
Specifically, in urban infrastructure and transportation, the minimum capital ratio for rail transit projects will drop from 25 percent to 20; for ports, airports, coastal and inland shipping, down from 30 percents to 25; for railways and highways, down from 25 percent to 20.
In real estate development, for low-cost housing and standard residential housing projects, the minimum capital ratio will remain at 20 percent; for other projects it will be reduced from 30 percent to 25.
In other areas, for corn deep-processing projects, the minimum capital ratio will fall from 30 percent to 20. For projects such as urban utility tunnels, parking spaces and nuclear stations approved by the State Council, the original minimum capital ratio can be reduced as needed.
In addition, the State Council urged financial institutions to stick to independent auditing when providing loan support in order to avoid risks.
