China to improve capital fund management of fixed-asset investment projects

China will further optimize the capital fund management of fixed-asset investment projects in a bid to promote effective investments and strengthen the prevention of risks.

China will lower as appropriate the minimum proportion of capital contribution for some infrastructure projects, with that of port, costal and inland waterway transport projects to be cut from 25 percent to 20 percent, according to a State Council executive meeting chaired by Premier Li Keqiang on Nov 13.

For infrastructure and other projects enjoying government encouragement, capital funds can be raised through the issuance of financial instruments with their proportion being no more than 50 percent of the total amount.

Meanwhile, the country will enhance the management of the field and intensify the prevention of risks.

The raised capital funds should not increase the implicit debts of local governments in violation of regulations and related requirements on the asset-liability ratio of state-owned enterprises, according to the meeting.