Exchange Bond Issuance:
Bond issuance by the Dealers Association:
Note:1. List of hidden debts:
1) The list of hidden debts of the China Banking and Insurance Regulatory Commission will be stopped in 2018.
2) The list of hidden debts issued by the Ministry of Finance to exchanges and dealers associations from time to time, the latest June 2022.
2. List of urban investment (this time):
1) List of local financing platforms: The Ministry of Finance will issue it to the exchanges and dealers associations, and the provincial administrative directors will report it. 3899+, the list is limited to borrowing new and repaying the old. It is said that more than 10,000 state-owned enterprises are involved, and more than 3,000 are bond issuers.
2) List of restricted areas of the Ministry of Finance (not limited to levels). Circular 35 includes 12 high-risk key provinces (Tianjin, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Chongqing, Guizhou, Yunnan, Gansu, Qinghai and Ningxia).Some prefecture-level cities, districts and counties with high debt ratios are also on the list.
3. Criteria for judging the industrial entities of the exchange:
Asset structure: ** assets account for less than 30% (agency construction and development costs, ** receivables).
Income indicators: ** income accounts for less than 30% (except for the construction of land consolidation, public utilities are discussed on a case-by-case basis, according to the marketization of income and the degree of dependence on subsidies). There is room for discretion in water affairs, rail transit and other businesses.
Profit index: 50% of the profit ** to non** (subsidy).
4. Judgment criteria for urban construction entities of the Dealers Association (window guidance): more complex than exchanges
1) Income level: 50% of the operating income of urban construction business (land consolidation, infrastructure, and affordable housing) in the past two years for at least one year. In the past two years, the proportion of operating income of urban construction business has been 30% and < 50%, but the gross profit of urban construction business accounts for the highest proportion. Substance is more important than form (an enterprise that has been recognized as urban construction will only be removed if it does not meet any of the above conditions for 2 consecutive fiscal years).
2) Proportion of cash flow: If it is judged to be a non-urban construction enterprise from the income level, but the business of the enterprise involves urban construction business or there are large amounts of urban construction business background in the balance sheet, such as receivables and payables, land payments, agency construction project payments, and current payments, etc., the pre-evaluation post will require the issuer and the lead underwriter to calculate the proportion of the company's cash flow. The formula for calculating the ratio of cash flow to cash inflow from operating activities is the arithmetic average of the ratio of cash inflow to cash inflow from operating activities in the last three fiscal years and the last five fiscal years (the weighted average cannot be used).
3) Asset structure: The dealers association may determine whether the bond issuer is an urban construction enterprise from the level of asset structure, and it is expected to be mainly considered from the perspective of asset accounts receivable, inventory, other non-current assets that are easy to involve traditional urban construction businesses such as land development and consolidation, entrusted construction, etc. The dealers' association may be more stringent in determining whether it is an urban construction enterprise, such as restricting the income or cash flow of urban construction according to a ratio of no more than 40% or even 30%, and discuss it on a case-by-case basis. The proportion of no more than 50% is only the minimum requirement for judging urban construction enterprises.