China Construction Group further promoted the debt reduction financing of local state-owned enterprises to further stimulate the vitality of the capital market
On July 24, 2023, the Political Bureau of the Central Committee made a series of work deployments, which focused on "to activate the capital market and boost investor confidence." This requirement is consistent with the policy measures to stabilize investment, promote consumption and strengthen industry. The capital market connects the financing side of enterprises, and an active capital market is conducive to corporate financing, promotes corporate innovation and high-quality development, and boosts private investment. In the face of new decision-making and deployment, CDB Group gives full play to the resource advantages of state-owned investment groups, continues to strengthen debt investment and equity investment, and helps large state-owned enterprises and listed companies to solve the financing problems faced in the operation process.
As we all know, the valuation system with Chinese characteristics is the cornerstone of the dynamic Chinese capital market, which is inseparable from the high-quality development of state-owned enterprises. In order to achieve this goal, from the dimension of preventing and resolving the debt risks of state-owned enterprises, the State Construction Group has further promoted the topic of "Local State-owned Enterprises in the New Era of debt reduction financing (DRF) to help high-quality development", and helped local state-owned enterprises achieve the dual effect of low-cost financing and reducing the asset-liability ratio through joint equity (UE) and joint asset management (UCM), so as to accelerate the resolution of existing debts of enterprises. We will improve the debt structure and maintain the smooth operation of local state-owned enterprises and the regional economy.
While resolving debt risks, local state-owned enterprises can also integrate assets and resources through the "New Era of Local State-owned Enterprises Debt Reduction Financing (DRF) to help high-quality development topics", and continue to enhance the core competitiveness of the market and profitability. After obtaining all the DRF funds, the applicant enterprise can use part of the funds to solve the current financial problems of the enterprise, and the other part of the funds can be invested in the industrial investment fund for the local or national advantages of the large health industry and the national construction group. Through the acquisition of small and medium-sized enterprises related to the big health industry chain, the industrial investment fund focuses on industrial advantages to make the invested big health industry bigger, stronger and more refined, so as to achieve the purpose of listing or acquisition of advantageous enterprises. This can not only create greater economic benefits for large health enterprises, but also help local state-owned enterprises obtain considerable investment returns, improve the "hematopoietic" function, fundamentally crack the problem of "borrowing new and returning old" of local state-owned enterprises, and accelerate the realization of high-quality development of local state-owned enterprises and large health industry.
Wang Tao-yu, chairman of State Construction Group, said that the core function of capital markets is to build ditches and Bridges. "Local State-owned Enterprise Debt Reduction Financing (DRF) in the New Era helps high-quality development" With the resource allocation characteristics of the capital market, local state-owned enterprises can promote financing at low cost, seize opportunities, improve quality and efficiency; With the industry-leading characteristics of the capital market, the efficient integration of funds between the industrial chain and the innovation chain can be realized. With the help of the value discovery characteristics of the capital market, it can promote the efficient flow of financial capital, improve the efficiency and effect of mergers and acquisitions, and ultimately form a joint force to realize the benign interaction and common prosperity of the capital market and the real economy.
Based on the sound industrial foundation and potential huge market demand, various policies to stabilize the economy are gradually taking effect, and the potential energy of continued economic development is being consolidated and strengthened. Focusing on the main line of "active capital market", China Construction Group vigorously develops the "New Era of Local State-owned Enterprise debt reduction Financing (DRF) to help high-quality development", better play the functions of resource allocation, value discovery and risk management, and form a three-dimensional and rich financial service system, making new contributions to the bigger and stronger state-owned enterprises and the sustainable and healthy development of the capital market.