Development and Reform Commission: Restricting Housing Enterprises’ External Debt Capital Investment in Real Estate Projects

NDRC : Restricting real estate investment in real estate projects of housing companies

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Zhongxin Jingwei client on June 27th According to the website of the National Development and Reform Commission on the 27th, the relevant person in charge of the National Development and Reform Commission said that it will work with relevant departments in accordance with “controlling the total amount, optimizing the structure, serving the entity, prudently advancing and preventing risks”. The principle of foreign debt management, improve the framework of prudent management of full-bore foreign debts and capital flows of domestic and foreign currencies, reasonably control the scale of foreign debts, optimize the structure of external debts, and effectively prevent external debt risks.

The above-mentioned person in charge introduced the main situation of the company’s overseas bond issuance management work and the next step of work. The current problems mainly include three aspects:

One is overseas The main structure of the debt is subject to further optimization. For example, the rating of the local urban investment company is generally low, and the scale of overseas bond issuance of real estate enterprises is growing rapidly.

Second, the risk prevention and control of overseas bond issuance needs to be strengthened. Some enterprises have their own credit status, and the ability to repay foreign debts has received attention.

The third is the coordination and coordination mechanism of external debt management between departments.

The above-mentioned person in charge pointed out that in order to solve the above problems, the relevant departments will, in accordance with the principle of “controlling the total amount, optimizing the structure, serving the entity, prudently advancing and preventing risks”, improve the full-bore domestic and foreign currency. The prudent management framework system for external debt and capital flows, reasonably controlling the scale of foreign debts, optimizing the structure of external debts, and effectively preventing external debt risks.

First, focus on optimizing the external debt structure, focusing on supporting a number of large-scale enterprises and financial institutions with strong comprehensive economic strength, high level of international management, and sound risk prevention and control mechanisms to issue bonds overseas, and guide funds to invest in innovation. , green development, emerging industries, high-end manufacturing and rural revitalization, coordinated development of Beijing-Tianjin-Hebei, Yangtze River Economic Belt, “One Belt and One Road” construction and international capacity cooperation projects, etc. Increase support for the real economy , vigorously promote the supply-side structural reform and the conversion of old and new kinetic energy, and promote the high-quality development of the economy.

The second is to to formulate the “Administrative Measures for the Issuance of Foreign Debts by Enterprises” as soon as possible. On the basis of summarizing the effects of the registration of foreign debts for more than two years, we will further listen to opinions and suggestions from local governments, enterprises, financial institutions and intermediaries, clarify the qualification requirements and conditions for issuing enterprises, and improve the registration and reporting methods and procedures. Do not engage in administrative approval in disguise, prevent discretion, and provide more convenience for cross-border financing of enterprises. At the same time, strengthen the collection of external debt information and post-event supervision, clarify violations and regulations, and standardize the registration management.

The third is to standardize the qualification requirements and capital investment of corporate borrowings, strengthen the early warning of foreign debt risks, introduce disciplinary measures for violations, and improve the market restraint mechanism. At the same time, it guides and regulates the investment of overseas real estate enterprises to issue bonds. The overseas bond issuance of real estate enterprises is mainly used to repay debts due and avoid debt defaults. Restrict real estate enterprises’ foreign debt funds to invest in domestic and overseas real estate projects, supplement working capital, etc. , and require companies to submit a commitment to use funds.

The fourth is to urge and guide market entities and intermediaries to actively strengthen the analysis and judgment of international capital markets, rationally allocate assets and liabilities, and optimize currency and duration matching. Guide enterprises to use currency swaps, swaps, forward foreign exchange, options and other derivative products to prevent exchange rate risks, reduce debt costs, and enhance solvency. The fifth is to improve the inter-departmental coordination supervision mechanism, and actively strengthen communication and coordination with the State Administration of Foreign Exchange and information sharing, and strengthen supervision and coordination. (Zhongxin Jingwei APP)

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