I. Guiding ideology and objectives for deepening the reform of the investment system (I) The guiding ideology for deepening the reform of the investment system is: according to the requirements of perfecting the socialist market economic system, give full play to the basic role of the market in allocating resources under the macro-control of the state, establish the dominant position of enterprises in investment activities, standardize the government's investment behavior, protect the legitimate rights and interests of investors, create a market environment conducive to fair and orderly competition among all types of investors, promote the rational flow and effective allocation of production factors, optimize the investment structure and improve investment efficiency. (2) The goal of deepening the reform of investment system is to reform the management system of government investment in enterprises, and implement the autonomy of enterprise investment according to the principle of "who invests, who makes decisions, who benefits and who bears risks"; Reasonably define the government's investment function, improve the scientific and democratic level of investment decision-making, and establish the accountability system of investment decision-making; Further broaden the financing channels of the project and develop various financing methods; Cultivate standardized investment intermediary service institutions, strengthen industry self-discipline and promote fair competition; Improve the macro-control system of investment and improve the ways and means of regulation; Accelerate the legislative process in the field of investment; Strengthen investment supervision and maintain a standardized investment and construction market order. Through deepening reform and opening wider to the outside world, a new investment system with market-oriented investment, independent decision-making by enterprises, independent loan examination by banks, diversified financing methods, standardized intermediary services and effective macro-control has finally been established. Second, change the management function of the government and establish the dominant position of enterprises as investors. Thoroughly reform the current enterprise investment management measures that governments at all levels and relevant departments examine and approve according to the investment scale, regardless of the investment subject, source of funds and nature of the project. For projects that enterprises do not use government investment, the examination and approval system will no longer be implemented, and the approval system and filing system will be implemented according to different situations. Among them, the government only approves major projects and restricted projects from the perspective of safeguarding public interests, and all other projects, regardless of size, are changed to filing system. The market prospect, economic benefits, sources of funds and technical solutions of products of the project shall be decided by the enterprise at its own risk, and the licensing procedures for environmental protection, land use, resource utilization, safe production, urban planning and the confirmation procedures for tax reduction and exemption shall be handled according to law. For projects where enterprises use government subsidies, loans and discount investments, the government only examines and approves fund application reports. All regions and departments should improve management measures accordingly, standardize management behavior, and not intercept the investment decision-making power delegated to enterprises in any name. (2) Standardize the government examination and approval system. It is necessary to strictly limit the scope of the government examination and approval system and make adjustments according to the changing situation. The Catalogue of Government-Approved Investment Projects (hereinafter referred to as the Catalogue) is proposed by the investment department of the State Council in conjunction with relevant departments and implemented after being reported to the State Council for approval. Without the approval of the State Council, all regions and departments shall not increase or decrease the scope stipulated in the Catalogue without authorization. Enterprises investing in the construction of projects subject to the approval system only need to submit the project application report to the government without going through the examination and approval procedures of project proposal, feasibility study report and commencement report. The project application report submitted by the government to enterprises is mainly examined and approved from the aspects of maintaining economic security, rationally developing and utilizing resources, protecting ecological environment, optimizing major layout, safeguarding public interests, and preventing monopoly. For foreign-funded projects, the government should also examine and approve from the aspects of market access and capital project management. The relevant government departments should formulate a strict and standardized examination and approval system, clarify the scope, content, reporting procedures and processing time limit of examination and approval, and publicize it to the public, so as to improve work efficiency and enhance transparency. (3) Improve the filing system. For enterprise investment projects outside the catalogue, the filing system shall be implemented. Unless otherwise stipulated by the state, enterprises shall file with the local government investment authorities in accordance with the principle of territoriality. The specific measures for the implementation of the filing system shall be formulated by the provincial people's government. The State Council investment authorities should strengthen the guidance and supervision of the filing work, and prevent disguised approval in the name of filing. (4) Expand the investment decision-making power of large enterprise groups. Large enterprise groups that have basically established a modern enterprise system can invest in the construction of projects in the Catalogue. They can report and approve projects independently, or make long-term development and construction plans. After the planning is approved by the investment authorities in the State Council or the State Council, the items in the catalogue will no longer be reported separately for examination and approval, just go through the filing procedures. The enterprise group shall report the implementation of the plan and the construction of the project to the relevant departments of the State Council in a timely manner. (5) Encourage social investment. Relax the field of social capital investment and allow social capital to enter industries and fields that are not prohibited by laws and regulations such as infrastructure and public utilities. We will gradually rationalize the prices of public goods, and encourage and guide social capital to participate in operating public welfare undertakings and infrastructure projects in the form of sole proprietorship, joint venture, cooperation, joint venture and project financing through measures such as capital injection, loan discount and tax incentives. For projects involving the development and utilization of state monopoly resources and requiring unified planning and layout, the government may, after determining the construction plan, invite public bidding to select the project owner. Encourage and support qualified enterprises of various ownership to invest abroad. (six) to further broaden the financing channels for enterprise investment projects. Allow all kinds of enterprises to raise investment funds by means of equity financing, and gradually establish a multi-level capital market in which various financing methods complement each other. With the approval of the State Council investment authorities and securities regulatory agencies, some infrastructure projects with stable income will be selected for pilot projects, and construction funds will be raised through public offering of stocks and convertible bonds. On the premise of strictly preventing risks, reform the management system of corporate bond issuance, expand the scale of corporate bond issuance and increase the variety of corporate bonds. In accordance with the principle of marketization, improve and perfect the bank's fixed asset loan approval and corresponding risk management system, and use syndicated loans, financial leasing, project financing, financial consulting and other business methods to support project construction. Enterprises of various ownership systems are allowed to apply for foreign loans in accordance with relevant regulations. Formulate relevant laws and regulations, organize the establishment of SME financing and credit guarantee system, encourage banks and various qualified guarantee institutions to study innovative project financing guarantee methods, adopt various forms to enhance the capital strength of guarantee institutions, promote the establishment of SME investment companies, and establish and improve the venture capital mechanism. Standardize the development of various investment funds. Encourage and promote indirect investment of insurance funds in infrastructure and key construction projects. (seven) standardize the investment behavior of enterprises. All kinds of enterprises should strictly abide by laws and regulations such as land and resources, environmental protection, safety in production and urban planning. , strictly implement industrial policies and industry access standards, and may not invest in projects prohibited by the state; Should be honest and law-abiding, safeguard public interests, ensure project quality and improve investment efficiency. State-owned and state-holding enterprises shall, in accordance with the requirements of the reform of state-owned assets management system and modern enterprise system, establish and improve the state-owned assets investor system, investment risk restraint mechanism, scientific and democratic investment decision-making system and major investment responsibility investigation system. Strictly implement the legal person responsibility system, capital system, bidding system, project supervision system and contract management system for investment projects. Third, improve the government investment system and standardize the government investment behavior. Government investment is mainly used in economic and social fields that are related to national security and the market cannot effectively allocate resources, including strengthening public welfare undertakings and public infrastructure construction, protecting and improving the ecological environment, promoting economic and social development in underdeveloped areas, and promoting scientific and technological progress and high-tech industrialization. Projects that can be built by social investment should be built with social funds as much as possible. Reasonably divide the investment rights of the central government and local governments. In addition to the construction of political power at the same level, the central government mainly arranges cross-regional and cross-basin projects that have a significant impact on the overall economic and social development. (2) Improve the decision-making mechanism of government investment projects. Further improve and adhere to scientific decision-making rules and procedures to improve the scientific and democratic level of government investment project decision-making; Government investment projects are generally evaluated by consulting intermediaries that meet the qualification requirements. Consulting and evaluation should introduce competition mechanism and formulate reasonable competition rules; Particularly important projects should also implement an expert appraisal system; Gradually implement the publicity system for government investment projects and listen to opinions and suggestions from all sides. (3) Standardize the management of government investment funds. Prepare medium-and long-term plans and annual plans for government investment, and make overall arrangements and rational use of various government investment funds, including budgetary investment, various special construction funds and foreign loans. According to the project arrangement, government investment funds can take the forms of direct investment, capital injection, investment subsidies, lending and loan interest subsidies according to the source of funds, the nature of the project and the needs of regulation. If there is capital injection, the investor's representative shall be determined. According to different types of funds and ways of using funds, we should determine the corresponding management methods, and gradually realize the scientific, institutionalized and standardized government investment decision-making procedures and fund management. (four) simplify and standardize the examination and approval procedures for government investment projects, and rationally divide the examination and approval authority. According to the nature of the project, the source of funds and the division of powers, reasonably determine the project examination and approval authority between the central government and local governments, and between the State Council investment authorities and relevant departments. For government investment projects, if direct investment and capital injection are adopted, only the project proposal and feasibility study report will be approved from the perspective of investment decision-making, and the commencement report will not be approved except in special circumstances. At the same time, the preliminary design and budget approval of government investment projects should be strictly implemented; Take investment subsidies, lending and loan interest subsidies, only the approval of the fund application report. The specific division of authority and approval procedures shall be studied and formulated by the competent investment department of the State Council in conjunction with relevant parties, and shall be promulgated and implemented after being approved by the State Council. (5) Strengthen the management of government investment projects and improve the construction implementation mode. Standardize the construction standards of government investment projects and revise and improve them in time according to changes in the situation. According to the progress of the project construction, the investment fund plan is issued. Strengthen the management of intermediary services for government investment projects, implement qualification management for intermediary agencies such as consulting and evaluation, bidding agencies, and improve the quality of intermediary services. Accelerate the implementation of the "agent construction system" for non-operating government investment projects, that is, select professional project management units to be responsible for construction and implementation through bidding, strictly control project investment, quality and construction period, and hand them over to users after completion and acceptance. Strengthen the awareness of investment risk and establish and improve the risk management mechanism of government investment projects. (6) Introducing market mechanism to give full play to the benefits of government investment. Governments at all levels should create conditions to attract social capital to participate in public welfare undertakings and public infrastructure projects with reasonable returns and certain investment recovery capacity through franchising and investment subsidies. For monopolistic projects, franchise will be tried out, fair competition will be conducted through the owner's bidding system, and public interests will be protected. Completed government investment projects can transfer property rights or management rights according to law if conditions permit, and the recovered funds can be used for rolling investment in infrastructure construction such as social welfare. Fourth, strengthen and improve the macro-control of investment (1) and improve the macro-control system of investment. Under the leadership of the State Council, the National Development and Reform Commission, in conjunction with relevant departments, closely cooperates with each other, operates effectively, supervises and regulates the investment activities of the whole society according to law, maintains a reasonable investment scale, optimizes the investment structure, improves the investment efficiency, and promotes the sustained, rapid, coordinated and healthy development of the national economy and all-round social progress. (2) Improve the macro-control mode of investment. Comprehensive use of economic, legal and necessary administrative means, mainly indirect regulation, to effectively regulate the investment of the whole society. According to the long-term plan of national economic and social development, the relevant departments of the State Council should formulate development and construction plans in important fields such as education, science and technology, health, transportation, energy, agriculture, forestry, water conservancy, ecological construction, environmental protection and strategic resource development, including necessary special development and construction plans, and define the guiding ideology, strategic objectives, overall layout and major construction projects of development. The development and construction plan approved in accordance with the prescribed procedures is an important basis for investment decision. Governments at all levels and relevant departments should strive to improve the efficiency of government investment and guide social investment. Formulate and timely adjust the national fixed assets investment guidance catalogue and the foreign investment industry guidance catalogue, and clarify the projects encouraged, restricted and prohibited by the state. Establish an investment information release system, timely release government regulatory objectives, major regulatory policies, investment status and development trends in key industries, and guide the investment activities of the whole society. Establish a scientific industry access system, standardize environmental protection standards, safety standards, energy and water consumption standards, product technology and quality standards of key industries, and prevent low-level redundant construction. (3) Coordinating macro-control measures for investment. According to the requirements of national economic and social development and the needs of macro-control, the scale of government investment is reasonably determined, and the state actively guides and effectively regulates the investment of the whole society. Flexible use of investment subsidies, interest subsidies, prices, interest rates, taxes and other means to guide social investment and optimize the industrial structure and regional structure of investment. Formulate and adjust credit policies in a timely manner to guide the total amount and investment of medium and long-term loans. Strictly regulate the land use system and give full play to the role of land supply in regulating and guiding social investment. (4) Strengthen and improve investment information and statistics. Strengthen investment statistics, reform and improve the investment statistics system, further timely, accurately and comprehensively reflect the stock of fixed assets and investment operation situation of the whole society, and establish various information sharing mechanisms to provide scientific basis for macro-control of investment. Establish an early warning and prevention system for investment risks, and strengthen the monitoring and analysis of macro-economy and investment operation. V. Strengthening and improving investment supervision and management (1) Establishing and improving the government investment supervision system. The establishment of government investment accountability system, engineering consulting, investment project decision-making, design, construction, supervision and other departments and units should have corresponding responsibility constraints, and those who do not comply with laws and regulations and cause great losses to the country should be investigated for administrative and legal responsibilities of the relevant responsible persons according to law. To improve the checks and balances mechanism of government investment, investment authorities, financial authorities and relevant departments should supervise each other's investment management according to the division of functions. Audit institutions should fully perform their duties according to law, further strengthen the audit supervision of government investment projects, and improve the management level and investment efficiency of government investment. Improve the inspection system for major projects, establish a post-evaluation system for government investment projects, and supervise the whole process of government investment projects. Establish a social supervision mechanism for government investment projects and encourage the public and news media to supervise government investment projects. (2) Establish and improve a coordinated enterprise investment supervision system. Departments of land and resources, environmental protection, urban planning, quality supervision, banking supervision, securities supervision, foreign exchange management, industrial and commercial management, and safety production supervision should strengthen supervision over investment activities of enterprises according to law, and those that do not conform to laws, regulations and national policies may not go through relevant licensing procedures. In the process of construction, those who do not comply with relevant laws and regulations shall be ordered by relevant departments to make corrections in time and dealt with severely according to law. Government investment departments at all levels should strengthen the inspection and post-event supervision of enterprise investment projects, and order them to stop construction for projects that do not meet industrial policies and industry access standards, as well as projects that start construction without performing corresponding approval or licensing procedures as required, and investigate the responsibilities of relevant enterprises and personnel according to law. Audit institutions shall audit and supervise the investment of state-owned enterprises according to law to promote the preservation and appreciation of state-owned assets. Establish an enterprise investment integrity system, punish those who provide false information and violate laws and regulations in the process of project declaration and construction, publicly disclose them, and restrict their investment and construction activities within a certain period of time. (3) Strengthen the supervision of investment intermediary service institutions. All kinds of investment intermediary service institutions must be decoupled from government departments, adhere to the principle of good faith, strengthen self-discipline, and provide investors with high-quality and diversified intermediary services. Encourage all kinds of investment intermediary service institutions to adopt various forms such as partnership and shareholding system for restructuring and transformation. Improve the trade associations of investment intermediary service institutions, and establish an industry management system with legal norms, government supervision and industry self-discipline. Break regional blockade and industry monopoly, establish an open, fair and just investment intermediary service market, and strengthen the legal responsibility of investment intermediary service institutions. (four) improve laws and regulations, supervision and management according to law. Establish and improve investment-related laws and regulations, protect the legitimate rights and interests of investors according to law, maintain a market environment in which investors compete fairly and orderly, investment factors flow reasonably, and the market plays a fundamental role in allocating resources, and standardize the investment behavior of various investors and the investment management activities of the government. Conscientiously implement relevant laws and regulations, strictly enforce financial discipline, plug management loopholes, reduce construction costs and improve investment efficiency. Strengthen law enforcement inspection, cultivate and maintain a standardized construction market order.

Attachment: Catalogue of Investment Projects Approved by the Government (2004 Edition)

The State Council, July 2004 16