Increase in capital ratio adjustment of overcapacity project

Morning News yesterday, the Chinese government Network issued the State Council on the adjustment of the capital ratio of fixed Assets investment Project notice, requirements from May 25 onwards in the various sectors of fixed assets investment projects under the new "Minimum capital ratio" implementation. The State Council executive meeting held on April 29 decided to adjust the capital ratio of fixed assets investment projects.　　However, no specific figures were released at that time.　　The specific rate of adjustment announced shows the government's "structural inclination" in implementing the 4 trillion investment. Special projects can reduce the capital of the Fixed Assets investment project Capital ratio adjustment, involving a number of industries and fields. Among them, steel, electrolytic aluminum project, the Minimum capital ratio is 40%; cement projects with a minimum capital ratio of 35%; coal, calcium carbide, ferroalloy, caustic soda, coke, yellow phosphorus, corn deep processing, machine tasting port, coastal and inland waterway shipping items, the Minimum capital ratio is 30%; railways, highways, urban rail transit, fertilizers (　　Except potash) project, the Minimum capital ratio is 25%, the minimum capital ratio for the guaranteed housing and ordinary commodity housing projects is 20%, the minimum capital ratio for other real estate development projects is 30%, and the other projects have a minimum capital ratio of 20%. With the approval of the State Council, the minimum capital ratio requirement can be appropriately reduced for major national construction projects of special circumstances. The minimum capital ratio can be reduced due to the independent innovation and High-tech investment projects supported by the state.　　Foreign investment projects are executed according to the relevant laws and regulations.　　The state will adjust the minimum capital ratio of fixed assets investment in time according to the development of economic situation and the need of macro-control.　　Real Estate "benefits" from the industry, the adjustment of the object does "have the pressure"-the infrastructure, infrastructure, livelihood projects, the proportion of loans to reduce capital, "two high" (highly polluting, high-energy and resource-related projects) to improve. The minimum capital ratio for ordinary commodity housing projects fell to 20% per cent from the original 35% per cent.　　35% this ratio, since September 2004 the CBRC promulgated the "Commercial Bank real estate loan risk management guidelines", has been nearly 5 years of real estate development projects (not including affordable housing projects) "gate". Earlier in the industry estimates, commercial residential project capital ratio down 10%, real estate developers can be new development funds at least 500 billion yuan.　　Now this is beyond expectations. The minimum capital ratio of the affordable housing is also adjusted to 20%.　　Prior to the central bank, the CBRC jointly issued the "Low-rent Housing construction Loan management measures", the demand for new Low-cost housing project capital is not less than 20% of the total project investment ratio; the reconstruction of Low-rent housing project Capital is not less than 30% of the total investment. In addition, the minimum capital ratio for other real estate development projects has been lowered to 30%.　　This means that the capital of real estate projects is relaxed. But a loosening of capital does not mean that bank lending will be open. The notification requires that financial institutions should insist on independent examination when providing credit support and servicesloans, to effectively prevent financial risks.　　According to the actual situation of the borrower and the project, the paper reviews and evaluates the authenticity of capital, investment income and loan risk in the light of the requirement of capital ratio stipulated by the State, and decides whether to issue the loan and the amount and proportion of the loan. Excess capacity increases the capital for energy-intensive industries such as electrolytic aluminum, which had a 5% per cent capital ratio of 35%.　　Increase capital ratio, will better implement the "non-ferrous Metal industry adjustment and revitalization plan" to eliminate backward production capacity requirements. 2008 the national new production capacity of nearly 3 million tons, to 19 million tons, about 1/3 of the world, electrolytic aluminum overcapacity at least 3.5 million tons, coupled with the construction capacity, surplus close to 5 million tons. The next 3 years, even if the aluminum consumption growth of 10%, the current capacity is more than sufficient.　　Some industry insiders believe that even according to the revitalization plan proposed by the end of 2010, the elimination of 800,000 tons of electrolytic aluminum backward production capacity, there are still surplus worries.　　Earlier projects with relatively high capital ratios such as steel and cement will remain unchanged.　　China's capital system for investment in fixed assets can be traced back to 1996, when the State Council issued a notice on the trial capital system for fixed assets investment projects, according to the economic benefits of different industries and projects, the proportion of investment project capital accounted for the total investment. 2004, under the background of macro-economic overheating, the macro-regulation needs to fine-tune the above policy, the proportion of steel project capital from 25% and above mentioned 40% and above; for cement, electrolytic aluminum, real estate development projects (excluding affordable housing projects) capital ratio from 20% and above mentioned 35% and above.