• Area of Law： Foreign Economy and Trade
• Level of Authority： Group Provisions
• Date issued：07-05-2016
• Effective Date：07-05-2016
• Status： Effective
• Issuing Authority： Central Committee of the Communist Party of China State Council

Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of the Investment and Financing System
(July 5, 2016)
Since the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee and the State Council have vigorously advanced the reform of the simplification of administrative procedures, decentralization of powers, combination of decentralization and control, optimization of services, made new breakthroughs in the reform of the investment and financing system, significantly reduced the scope of investment programs for approval, shifted the focus of the investment administration gradually from advance approval to the process services and interim and ex-post supervision, further implemented the autonomy of enterprises in investment, and motivated the private capital. Meanwhile, it should be noticed that, compared with the requirement of the transformation of governmental functions and social and economic development, there still exist some problems in the administration system for investment and financing, mainly including: the simplification of administrative procedures and the decentralization of powers are not coordinated or effective, and the position of enterprises as principal subjects remains to be further determined; the problems of difficulties and expensiveness in financing for investment and financing programs are relatively prominent, and financing channels are required to be further opened up; the government administration of investment is urgently required to be innovated on, and the guidance and motivation role remains to be further played; the decentralization of powers is out of pace with the development of supporting systems, and the interim and ex-post supervision and the process service is still required to be strengthened; and the development of investment laws is still lagged behind, and the legal level of the investment supervision urgently needs improved. For the purpose of deepening the reform of the investment and financing system, and making full use of the key role of investment in stabilizing growth, adjusting structure and benefiting the people, the following opinions are hereby offered.
I. General requirements
By comprehensively implementing the spirit of the 18th CPC National Congress and the Third, Fourth, and Fifth Plenary Sessions of the 18th CPC Central Committee, guided by the Deng Xiaoping Theory, the important thoughts of "Three Represents," and the Scientific Outlook on Development, studying and implementing in depth the spirit of a series of important speeches delivered by the General Secretary Xi Jinping, according to the overall layout for "economic, political, cultural, social, and ecological progress" and the strategic layout of "Four Comprehensives," firmly developing and implementing the new development concept of innovation, coordination, greenness, open and sharing, the structural reform, especially the structural reform of the supply side, shall be vigorously advanced, the market shall be allowed to play the decisive role in resource allocation, and the government shall be allowed to play a better role. The governmental functions shall be further transformed, the reform of the simplification of administrative procedures, decentralization of powers, combination of decentralization and control, and the optimization of services shall be advanced in depth, and a new-type investment and financing system featuring independent policy making by enterprises, unimpeded financing channels, effective transformation of functions, regulated government actions, effective macro-adjustment and control, and complete legal guarantee.
-- Enterprises as principals, and the government playing guiding role. The scope of government investment shall be scientifically defined and strictly controlled, all types of investing entities shall be equally treated, the position of enterprises as investing entities shall be determined, the private investment shall be relaxed and vitalized, the potential of private investment and the vigor of innovation shall be unleashed. The guiding role and amplifying effect of government improvement shall be made full use of, and the public-private partnership shall be improved.
-- Combining decentralization and control, and optimizing services. The administration of investment shall be based on the effective provision of services for the investment activities of enterprises, the administration shall be implemented in services, and the services shall be realized in administration. More attention shall be paid to the advance policy guidance, interim and ex-post supervision and restraint and process services, the service mode shall be innovated on, the service process shall be simplified, and the comprehensive ability shall be improved.
-- Innovating on mechanism, and keeping channels unimpeded. The investment and financing channels shall be opened up, the source of funds for investment programs shall be expanded, and the potential of private funds shall be fully explored, so as to turn more savings to effective investment, and effectively ease the problems of difficulties and expensiveness in financing for investment programs.
-- Making overall arrangements, giving equal consideration, and conducting coordination and advancement. The reform of the investment and financing system and the structural reform of the supply side and the reform in the fields of finance and tax, finance, state-owned enterprises, etc., shall be organically connected, and overall advanced, and a working mechanism featuring interactions between upper and lower levels and horizontal cooperation shall be established, so as to form a joint reform force.
II. Improving the administration of enterprise investment, and fully triggering the motivation and vigor of private investment
(1) Determining the positions of enterprises as investing entities The minimization of the scope of the approval of enterprise investment shall be adhered to, and enterprises shall, in principle, independently make decisions on investment in accordance with the laws and regulations. A commitment system for enterprise investment programs shall be piloted within certain fields and regions, and an administration mode with the guidance of policy conditions, enterprise credit commitment, and effective restraint by supervision as its core shall be explored and innovated on. If the government, from the perspective of maintaining social and public interests, indeed needs to review and control a tiny minority of programs relating to the national security, ecological safety, the distribution of national significant productivity, the development of strategic resources, and significant public interests, etc. it shall specify the relevant matters in the form of a list, and maximally reduce the matters subject to approval.
(2) Establishing a "three lists" administration system for investment programs. The catalog of investment programs subject to government approval shall, in a timely manner, be revised and issued, the negative list system for the administration of enterprise investment programs shall be implemented, and, save the items within the scope of the catalogs, all shall be governed by a recordation system, and enterprises shall, according to the relevant provisions, conduct recordation at recordation authorities. A power list system for the administration of enterprise investment programs shall be established to define the powers exercised by the departments of the governments at all levels to administer the enterprise investment programs in the form of a list, the principle of legal authority shall be strictly observed, the exercise of powers shall be regulated, and the administration process shall be optimized. A responsibility list system for the administration of enterprise investment programs shall be established to sort out the responsibility matters corresponding to powers for the departments of the governments at all levels to administer the enterprise investment programs, define responsible bodies, and improve the accountability mechanism. A "three lists" dynamical administration mechanism shall be established and improved, and adjustment shall, in good time, be made based on the change of circumstances. The lists shall, in a timely manner, be disclosed to accept social supervision, and ensure lawfulness, open and transparency.
(3) Optimizing administration process. In the case of investment programs subject to the recordation, the recordation authorities shall, through the online investment program approval and regulatory platforms or government service halls, provide rapid and convenient recordation services, but shall not establish any precondition. In the case of investment programs subject to approval, government departments shall, depending on the online investment program approval and regulatory platforms or government service halls, implement parallel approval. The relevant formalities at the access phase of the investment programs shall be simplified, and only the proposal of location, preliminary review of land (sea) use, and the approval of environment impact assessment of major programs shall be reserved as precondition; and the relevant departments shall, according to the requirement for the parallel handling and joint appraisal and review, coordinate the decentralization of approval powers, and explore and establish a new mode featuring multiple appraisal in one, and uniform appraisal and review. The marketing process of the intermediary services shall be advanced, the industrial and regional barriers and departmental monopoly shall be broken, the interest association between intermediary service agencies and government departments shall be cut off, and an open and transparent intermediary service market shall be established. The formalities of the construction reporting of investment programs shall be further simplified and integrated, the approval formalities with regard to the technical review category at the construction reporting phase of the investment programs shall be canceled, and the administration mode of construction first and check later shall be researched and implemented.
(4) Regulating enterprise investment. All types of enterprises shall strictly observe the laws and regulations in the aspects of urban and rural planning, land administration, environmental protection, work safety, etc., conscientiously implement the provisions of relevant policies and standards, implement in accordance with the law the program legal person responsibility system, the bidding system, the project supervision system, and the contract management system, practically strengthen the development of a credit system, and voluntarily regulate investment. In respect of a program which is constructed not according to the content of the approval, or of which the approval or recordation formalities were obtained by improper means, the approval or recordation authorities shall, depending on the seriousness of the case, in accordance with the law, give such punishment as warning, order to cease construction, or order to cease production; and in respect of a program which is constructed without handling other relevant formalities in accordance with the law, or the construction of which is in violation of the laws and regulations in the aspects of urban and rural planning, land administration, environmental protection, work safety, etc., relevant departments shall give a punishment in accordance with the law. If the relevant responsible person is suspected of any crime, the case shall be transferred to the judiciary. All types of investment intermediary service agencies shall adhere to the principle of good faith, strengthen self-regulation, raise the awareness of services and social responsibility, and build an honest, efficient, and socially reliable industrial image. The relevant industrial associations shall strengthen industrial self-regulation, improve industrial norms and standards, and improve service quality, but shall not conduct approval in disguise.
III. Improving the government investment system, and making good use of the guiding and motivating role of government investment
(5) Further defining the scope of government investment. The government investment funds shall be invested in the programs of social charitable services, public infrastructures, agriculture, rural areas, ecological and environmental protection and repair, significant progress in science and technology, social management, national security, etc., where the market cannot effectively allocate resources, mainly in non-business programs, and shall, in principle, not support business programs. A mechanism to regularly assess and adjust the scope of government investment shall be established, and the investment direction and structure shall be constantly optimized, so as to improve investment efficiency.
(6) Optimizing the mode of arranging government investment. The government investment funds shall be arranged by programs and mainly in the mode of direct investment. In the case of a business program indeed needing support, investment shall be made mainly by the means of capital injection, or guidance may be given by appropriately adopting the means of investment subsidiary, interest subsidiary for loans, etc. The arrangement of government investment funds shall, on the basis of defining the rights and interests of all parties, equally treat all types of investing entities, but shall not establish discriminatory conditions. All types of funds, such as infrastructure construction funds, public service development funds, housing guarantee development funds, and government capital contribution and industrial investment funds shall, in the light of the development need, be launched and established to fully make use of the guiding and amplifying role of government funds. The market-oriented transformation of the financing platforms of the local governments shall be accelerated.
(7) Regulating the management of government investment. A three-year rolling government investment plan shall, pursuant to the national economic and social development plan and the overall requirement of the national macro-adjustment and control, be made, to specify the significant programs within the term of the plan, connect the medium- and long-term financial plans, and overall arrange and regulate the use of all types of government investment funds. An annual government investment plan shall, pursuant to the three-year rolling government investment plan and the national macro-adjustment and control policies, be made to reasonably arrange government investment. A tank of government investment programs covering all regions and all departments shall be established, and no government investment shall, in principle, be arranged for any program not in the tank. The uniform information management mechanism for the government investment programs shall be improved, and a program information platform connecting all regions and all departments shall be established and expanded to enterprise investment programs as soon as possible, so as to realize information sharing. The government investment program approval system shall be improved and regulated, and, if a program, in which investment is directly made, or into which the capital is injected, has a significant impact on the social and economic development and the general public interests, or features relatively large-scale investment, the project proposal, feasibility study report and preliminary design shall, on the basis of the assessment of consultation institutions, public participation, expert appraisal, risk assessment, and other scientific argumentation, be strictly approved. In respect of the programs as specified in the special planning and regional planning approved by the State Council and the relevant departments, programs reconstructed or extended in part, and program featuring single construction content, small-scale investment and simple technical solution, relevant document content and approval procedures may be simplified.
(8) Strengthening the interim and ex-post supervision of government investment. The administration of the construction of government investment programs shall be strengthened, and the requirement for investment estimate, construction standards, construction term, etc. shall be strictly made. Investment plans shall be issued in strict accordance with the progress of the construction of programs to ensure that government investment becomes effective in a timely manner. The estimate shall be strictly implemented, the construction cost shall be strictly controlled, and the systems for estimate approval, adjustment, etc. shall be improved. The construction agent system for government investment programs shall be further improved. The application of the building information modeling technology shall be promoted in the fields of social causes, infrastructures, etc. Government investment programs with good conditions shall be encouraged to be operated and managed through market-oriented method. The government investment regulatory mechanism shall be improved, the auditing supervision of investment programs shall be strengthened, the significant program auditing system shall be strengthened, the system for the check for acceptance on completed construction shall be improved, an ex-post appraisal system shall be established, and the government investment accountability system shall be improved. A social supervisory system shall be established, the disclosure of the information on government investment shall be promoted, and the pubic and media shall be encouraged to supervise government investment.
(9) Encouraging the cooperation between the government and private capital. All regions all departments may, based on the need and financial resources, through franchise, government procurement of services, and other methods, in such multiple forms as single program, portfolio program, and tract development in the fields of transport, environmental protection, medical care, support for the elderly, etc., expand the supply of public products and services. The policy support shall be reasonably given in the aspects of price, land, finance, etc., and the expected profits from the programs shall be stabilized. The role of the specialized institutions in the aspects of project consultation, bank finance, corporate finance, law, etc. shall be made use of, the rationalization of the policy making on the programs, the specialization of program management and the effectiveness of the implementation of programs shall be improved.
IV. Innovating on the financing mechanism, and keeping unimpeded the financing channels for the investment programs
(10) Vigorously developing direct financing. Depending on the multiple-layer capital market system, the financing channels for the investment programs shall be expanded, the assets securitization supported by the real economic activities shall be supported, existing assets shall be revitalized, the financial resource allocation shall be optimized, and the investment in enterprises shall be better served. The direct financing for investment programs in the fields of energy, traffic, etc. shall, in the light of the reform of the state-owned enterprises and the innovation on the mixed ownership mechanism, be optimized. More financial support shall, through multiple methods, be given to the investment programs of enterprises at seed stage and start-up stage, and equities, debts, credit loans, and other comprehensive financing services shall be provided particularly to the "entrepreneurship and innovation among all the people" programs. More efforts shall be made to innovate, the types of bonds shall be increased, the enterprise bonds, company bonds, debt financing instruments of non-financial enterprises, project-proceeds bonds, etc. shall be further developed, and investment programs in the key fields shall be supported in raising funds through the bonds markets. The pilot program that financial institutions hold enterprise equities by appropriate means, in accordance with the law, shall be conducted. An industry (equity) investment fund guided by the government, operated in a marketed-oriented manner, shall be established, the participation of private capital shall be vigorously attracted, and the financial institutions, the National Security Fund, the insurance funds, etc. shall, on the premise of compliance with the laws and regulations, and controllable risks, upon the approval, effectively participate by subscribing for fund shares, and other means. The establishment of a standardized debt financing mechanism for local governments shall be accelerated, and provincial-level governments shall be supported in issuing government bonds in accordance with the laws and regulations for the construction of key programs in the public field.
(11) Making full use of the positive role of policy and development financial institutions. Policy and development financial institutions shall, within the business scope approved by the state, provide more funds support to the urban shantytown renovation, ecological and environmental protection, urban and rural infrastructure construction, innovation on science and technology, and other significant programs and projects. Policy and development financial institutions shall, in accordance with the need of the macro-adjustment and control, be supported in issuing financial bonds especially used to support the construction of key programs. The role of special construction funds shall be made use of, and the programs in the key fields, with accurate judgment and return, without increasing excessive production capacity, forming repeated construction, or producing crowding-out effect, shall be supported through capital funds injection, equity investment, and other means. A mechanism for the cooperation and connection among the government, enterprises and society shall be established and improved, an information sharing and funds connection platform shall be built, and financial institutions shall be coordinated for more support to significant projects.
(12) Improving the mechanism for the investment of insurance funds and other institutions' funds in the construction of programs. On the premise of controllable risks, the scope of the investment of the insurance funds shall be gradually expanded, and the method to use funds shall be innovated on. The adoption of debts, equities, assets support, and other multiple modes shall be encouraged to support the construction of programs in the fields of significant infrastructures, significant livelihood projects, new-type urbanization, etc. The advancement of the development of the National Security Fund, the basic pension insurance fund, the enterprise annuity, and other investment management systems shall be accelerated, and a market-oriented investment and operation mechanism shall be established and improved.
(13) Accelerating the development of a more open investment and financing system. An investment and financing mechanism helpful to deepen overseas cooperation shall be innovated on, the coordination and cooperation between financial institutions shall be strengthened, and all types of funds shall be used effectively to provide more investment and financing support for domestic enterprises to head overseas and cooperate in key programs. Within the micro and macro prudent management framework, it shall be steadily relaxed for domestic enterprises and financial institutions to go overseas for financing, and risks shall be effectively evaded. The overseas bonds issuance recordation system shall be improved, and cost-efficient foreign exchange funds shall be raised so as to better support the outward investment programs of enterprises. The cooperation among the international financial institutions and the governments, enterprises and financial institutions of all countries in multiple-level investment and financing shall be strengthened.
V. Practically transforming governmental functions and raising comprehensive service and administration level
(14) Innovating on the service and administration mode. A first consultant accountability system for the approval of investment programs shall be explored, established, and gradually promoted, and the competent departments of investment or approval coordination institutions, as the first acceptance entities, shall accept and handle the approval "in one stop," provide "whole-process" services, and be responsible to the end. The Internet, big data and other technologies shall be made full use of to accelerate the development of the online investment program approval regulatory platform, interconnect the departments of the governments at all levels, cover all types of investment programs across the country, and realize one-stop acceptance, online handling, regulation and transparency, and conclusion within a prescribed time limit. The development of a uniform investment program code system shall be accelerated to uniformly collect the program information on approval, construction, regulation, etc., realize information sharing, promote information disclosure, and improve transparency. All the relevant departments shall develop the working rules for program approval and matter-handling guide, disclose in a timely manner the acceptance, handling process, and approval results, and release information on policies, investment, intermediary services, etc., so as to provide reference and help for enterprises to make decisions on investment. News media, citizens, legal persons and other organizations shall be encouraged to supervise the services and administrative actions of governments. The focus of services and administration shall move downward, the development of the business guide and grassroots investment management teams shall be strengthened, and the local governments shall be given more autonomy to fully motivate them.
(15) Strengthening guidance by planning and policies. The role of the development planning, industry policies, industrial standards, etc. in guiding investment activities shall be made full use of, and provide regulatory basis. Development planning shall be used as an important method to guide investment direction, stabilize investment operation, regulate program access, optimize program distribution, and reasonably allocate funds, land (sea), energy resources, human resources, and other factors. The Catalog for Guiding Industrial Restructuring, the Catalog of Industries for Guiding Foreign Investment, etc. shall be improved to provide basis and guidance to all types of investment activities. A more scientific, more complete, and more operable industry access standard system shall be developed, the development and revision of technical standards for energy consumption, water consumption, land use, carbon emission, pollution discharge, work safety, etc. shall be accelerated, an energy efficiency and pollution intensity "pacemaker" system shall be implemented, and all regions shall, based on their actuality, in accordance with the law, develop stricter local standards.
(16) Improving regulatory and restraint mechanisms. According to the principle of the approval authorities and the competent authorities responsible for regulation, the regulatory responsibilities shall be specified, and attention shall be paid to making use of the comprehensive regulatory functions of the competent departments of investment, the locally and expediently regulatory role of the local governments, and the specialized advantages of industrial administrative departments, so as to integrate regulatory forces, share regulatory information, and realize coordinated regulation. Depending on the online investment program approval regulatory platform, the regulation of the whole process of the construction of the programs shall be strengthened to ensure that the programs are constructed lawfully and the construction process conforms to regulations and remains order. All the relevant departments shall improve rules and systems, develop regulatory work guide and operation rules, and promote the specification and disclosure of the standards for the regulatory work. Law enforcement shall be strictly conducted, and the investment and construction in violation of the laws and regulations shall be rectified, investigated and dealt with in accordance with the law. A credit commitment system for the relevant entities in the field of investment and financing shall be implemented, abnormal credit records and a "blacklist" of serious violation of the laws and loss of faith shall be established and included into the national credit information sharing platform, and the governments and investors' awareness of contract and honesty shall be enhanced and raised, so as to develop a restraint mechanism of incentive for keeping faith and joint punishment for losing faith, promote relevant subjects in practically strengthening responsibilities and performing statutory obligations, and ensure the safe, efficient operation of the investment and construction markets.
VI. Strengthening guarantee measures, and ensuring the effective implementation of the reform tasks
(17) Strengthening division of duties and cooperation. All regions and all departments shall fully recognize the importance and urgency to deepen the reform of the investment and financing system, strengthen organization and leadership, effectively conduct division of duties and cooperation, make specific measures, specify division of tasks and time nodes, regularly conduct supervision, strengthen accountability, and ensure the steady advancement of all reform measures. The competent department of investment of the State Council shall practically and effectively perform the duties of the comprehensive coordination and overall advancement of the adjustment, control and administration of investment.
(18) Accelerating relevant legislative work. The laws and regulations relating to investment and financing shall be improved, the regulation on government investment, the regulation on the approval, recordation and administration of enterprise investment programs shall be developed and implemented, the advancement of the legislative work in the aspects of social credit, equity investment, etc. shall be accelerated, the rights and interests of all parties shall be protected in accordance with the law, and an investment and financing market environment featuring fair and orderly competition and reasonable flow of factors shall be maintained.
(19) Advancing supporting reform. The advancement of the reform in the fields of railway, petroleum, natural gas, electric power, telecommunications, medical care, education, urban public utilities, etc. shall be accelerated, the public private partnership and the administration of franchise shall be regulated and improved, and private capital shall be encouraged to participate. The advancement of the pricing reform in the fields of infrastructures, public utilities, etc. shall be accelerated, and the mechanism for the market to determine prices shall be improved. The reform supporting the land system shall be researched and promoted. The advancement of the reform of and innovation on the financial system shall be accelerated, and the financial market operation mechanism shall be improved. The reform of the investment and financing system and the reform in other fields shall be advanced in coordination to produce an overlapping effect, and the reform dividends shall be fully unleashed.