Group 1 - The core viewpoint of the article is the introduction of new regulations for existing PPP projects to enhance public services and ensure smooth operation, following the implementation of a new PPP mechanism by the government [1][2] - The State Council has forwarded the Ministry of Finance's guidelines to regulate the construction and operation of existing PPP projects, allowing local governments to use special bond funds to address the issue of social capital covering construction costs [1][2] - As of the end of 2022, there were 8,057 recorded PPP projects with a total investment of 11.6 trillion yuan, indicating the scale and significance of these projects in China's public service improvement [1] Group 2 - The guidelines prioritize projects with certain profitability and require local governments to rationally sort projects based on economic and social development needs, ensuring timely completion and operation of nearly completed projects [2] - Financial institutions are encouraged to objectively assess and support financing for ongoing projects, optimizing credit approval processes and avoiding unnecessary delays [2][3] - For eligible ongoing projects, local governments can utilize general and special bond funds for government expenditures related to the construction costs of PPP projects [3]

Domestic News - The State Council's office has forwarded the Ministry of Finance's guidance on standardizing the construction and operation of existing government and social capital cooperation (PPP) projects, emphasizing increased financial support for eligible ongoing projects. Local governments can utilize general and special bonds for government expenditures related to the construction costs of PPP projects [1] - The Ministry of Finance and the State Taxation Administration announced that childcare subsidies issued under the childcare subsidy system will be exempt from personal income tax, effective from January 1, 2025 [2] Financial Regulations - The Financial Regulatory Bureau is seeking public opinion on the draft of the "Commercial Bank Merger Loan Management Measures," which categorizes merger loans into control-type and equity participation-type loans, with specific conditions for each type [2] Market Performance - The Hong Kong stock market experienced strong growth in the first half of 2025, with a total fundraising amount of HKD 109.4 billion, representing a year-on-year increase of 716%. There are currently 207 listing applications being processed [4] Economic Data - The People's Bank of China announced that the loan market quotation rate (LPR) for one year remains at 3.0% and for five years or more at 3.5%, both unchanged [2] - The latest data from Japan shows a significant year-on-year decline in exports by 2.6% in July, marking the third consecutive month of negative growth [6]

Core Viewpoint - The new guidelines for government and social capital cooperation (PPP) projects aim to enhance the integration of local government bonds and PPP projects, injecting new momentum into existing infrastructure projects [1][2]. Group 1: Policy Innovations - The guidelines allow local governments to use general and special bonds for funding eligible PPP projects, breaking the previous isolation between special bonds and PPP projects [2][3]. - The new rules require local governments to include operational subsidies for existing projects in budget management, enhancing market confidence and facilitating the resolution of financing issues for social capital [2][5]. Group 2: Implementation and Management - The guidelines emphasize that current governments must take responsibility for existing projects, ensuring contract execution is included in performance evaluations [3][5]. - A differentiated approach is proposed for various types of PPP projects, with specific strategies for projects nearing completion and those lagging behind [4][6]. Group 3: Financial Support and Risk Management - Financial institutions are encouraged to support ongoing projects in a market-oriented manner, ensuring timely loan disbursement based on project needs [4][5]. - The guidelines stress the importance of debt management, prohibiting local governments from exceeding legal borrowing limits while promoting sustainable development of the PPP model [5][6]. Group 4: Long-term Mechanisms and Performance Improvement - The ongoing legislative efforts aim to create a stable and transparent environment for PPP projects, addressing issues related to bidding and procurement laws [6][7]. - Performance management reforms and optimized special bond management mechanisms are expected to provide sustainable financial support for PPP projects [6][7]. Group 5: Market Impact - The new regulations are anticipated to revitalize stalled projects and enhance market activity, with a focus on efficient allocation of resources [5][7]. - The integration of local debt and PPP projects is expected to establish a long-term mechanism for coordinated development, supporting economic stability and modern infrastructure construction [7].

《意见》提出保障在建项目顺利建设、推动已运营项目平稳运行、强化政策支持、加强组织保障等四方面主要内容。 在保障在建项目顺利建设方面，《意见》明确"分类分级推进实施"，地方政府要根据经济社会发展需要、项目性质和财力 状况，按照轻重缓急合理排序，优先实施具有一定收益的项目，持续保障项目建成完工。对接近完工的项目，要抓紧推进建 设、及时验收决算、及早投入运营。对推进缓慢的项目，要进一步论证建设内容，研究压缩实施规模、优化建设标准、调整配 套建设内容等，减少不必要建设成本，相关程序严格按照《政府投资条例》《企业投资项目核准和备案管理条例》等有关规定 执行，原则上不得超出已核定概算总投资。政府方、社会资本方要及时足额缴纳项目资本金。2024年底前未开工的项目原则上 不再采取PPP存量项目模式实施。 本报讯 （记者韩昱）财政部8月20日发布消息称，日前，国务院办公厅转发财政部《关于规范政府和社会资本合作存量项 目建设和运营的指导意见》（以下简称《意见》）的通知，提出规范政府和社会资本合作（PPP）存量项目建设和运营，支持 提升公共服务和民生保障水平。 （编辑 张昕） 在强化政策支持方面，《意见》明确"加大财政支持力度"， ...

Core Viewpoint - The State Council of China has issued guidelines to ensure the smooth construction and operation of existing Public-Private Partnership (PPP) projects, emphasizing the need for prioritizing projects with certain returns and optimizing costs [1][2]. Group 1: Project Implementation - Local governments are required to prioritize the implementation of profitable projects and ensure their completion [1]. - For projects nearing completion, there is an emphasis on expediting construction, timely acceptance, and early operation [1]. - Projects that are progressing slowly may have their scale reduced, construction standards optimized, and unnecessary costs minimized, with a strict adherence to approved budget limits [1]. Group 2: Financing and Support - Financial institutions are encouraged to objectively assess and support the financing of ongoing projects in compliance with market and legal principles [1][2]. - The approval process for credit should be optimized, with no unjustified terminations or demands for additional documentation from local governments [1][2]. Group 3: Collaboration and Cost Management - The guidelines promote equal communication and mutual benefits among social capital, financial institutions, and government entities to optimize project implementation and reduce operational costs [2]. - Social capital is urged to enhance operational professionalism and reduce costs while improving project returns [2]. - Local governments can utilize general and special bonds to fund government expenditures related to eligible ongoing PPP projects [2]. Group 4: Debt Management and Legal Protections - There is a strong emphasis on managing local government debt, ensuring that borrowing does not exceed legal limits to maintain fiscal safety and sustainability [2]. - Measures must be taken to prevent contract disputes and ensure the protection of the rights of all parties involved, including government, social capital, and financial institutions [2].