With the implementation of a number of major strategic framework policies such as the "14th Five-Year Plan", the current work goals of local governments have become increasingly clear. In the next five years, urban construction and the improvement of public services will continue to be very important tasks for local governments. The investment required to improve the living quality of urban residents through infrastructure and improve the work of protecting people’s livelihood through the renovation of old communities will still be huge.

However, in the context of restricting the new debts of local governments and urban investment companies and restricting real estate financing, the urban development business of local governments has encountered very large obstacles; these projects with large initial investment and long demolition cycles, where does the money come from? Become a big problem.

However, the intervention of policy finance has made this problem turn around. Just as policy finance has greatly promoted the transformation of local shanty towns in the past ten years, it has greatly assisted the new urbanization work; now the China Development Bank and the Agricultural Development Bank of China have proposed supporting urban renewal actions and are promoting a large number of tens of billions of urban renewal projects. Landing.

Introduced management measures in many places to improve the local policy framework

Recently, many places have intensively introduced or revised local management measures for urban renewal: on June 2, Shanghai announced the first to establish the nation’s largest urban renewal fund; on June 3, the Zhuhai Municipal Government’s executive meeting reviewed and approved in principle the "Zhuhai Special Economic Zone" Urban Renewal Management Measures (Revised Draft); on June 10, Chongqing issued the “Chongqing Municipal Urban Renewal Management Measures”; on June 18, Beijing issued guidance on the implementation of urban renewal actions; on June 22, Guangzhou City increased The urban area issued the "Fourteenth Five-Year Plan for the National Economic and Social Development of Zengcheng District, Guangzhou and the Outline of Long-Term Goals for 2035". A total of 10 urban renewal projects were included in the planning outline, with a total investment of 108.35 billion yuan, of which 515.7 were invested during the 14th Five-Year Plan 100 million yuan.

In addition, Xuzhou, Jiangsu, Jinan, Shandong, and Fuzhou, Fujian have each issued local urban renewal management measures; Tianqiao District of Jinan proposed to implement two major categories of urban renewal, demolition and upgrading, totaling 115 projects. (For reprinting, please indicate see www.seetao.com) Seetao.com strategy column editor/Xu Shengpeng

It can be seen that many places are intensively improving the policies in the field of urban renewal, not only to promote the implementation of the project, but also to meet the requirements of “return closure” required in the process of policy-based financial credit granting; with the adoption of specific policies, preparations from last year So far, a large number of urban renewal projects with a single project scale of tens of billions are about to land.

Unlike the previous shantytown renovation of a single plot, the urban renewal takes the district as a unit, and the total investment of the project needs to cover land acquisition and demolition, infrastructure construction, existing building renovation and renovation, affordable housing, public service facilities and industrial infrastructure, etc. Multi-faceted investment will significantly expand the investment volume of a single project. News about the concept of urban renewal and the implementation of projects in the market will continue to appear in the recent market, becoming an important channel and mode for local governments to improve the status quo of the city.

As the main body of operation, urban investment actively promotes platform transformation

Under the requirements of "reducing government leverage and not increasing local debt ratios", urban renewal projects often need to achieve an internal balance of income; that is, through the vacated land in the area, the repair and transformation of existing buildings, to obtain land development income, Self-owned property income is used to balance the investment in public welfare infrastructure and public service expenditure.

In addition to the relevant requirements of policy finance, these large urban renewal projects will still be operated by local urban investment as the main body of marketization, undertaking policy bank loans, conducting market-oriented development, and repaying principal and interest through operating income; In the case of local finance, the project income and expenditure will be operated in a closed manner to achieve the goal of self-balancing of funds.

Judging from the recent general trend of fiscal reform and urban investment transformation, the balance of project internal income has become an important way for urban investment to market-oriented local infrastructure and public service projects; this is basically the case for local special bonds, area development and urban renewal projects . Therefore, undertaking policy bank loans and promoting the implementation of urban renewal projects will also be a useful attempt to transform the investment and construction model of local urban investment. The relatively low-cost, long-term funds of policy banks will also become an important source of funding to support the operation of financing platforms in the near future.

One city, one strategy for urban renewal, with obvious regional differentiation

The trend of urban renewal projects has arrived, and the news of the project's landing is about to bloom. Therefore, some institutions believe that urban renewal project loans may have a greater impact on the entire urban investment and financing and local real estate market, just like the past shed reform loans.

Judging from the actual situation of the project, although the final scale of the urban renewal project is much larger than that of the previous single shed reform project, the requirements for the operation of the project are also relatively high. The requirements for the status quo, planning, or project output and operation are very specific and complicated, and the requirements for local governments and urban investment have also increased significantly.

This makes the threshold of urban renewal projects not low, requiring "one city, one policy, immature and not landing"; therefore, urban renewal policies are an opportunity for local governments, but due to the rigid threshold requirements, there will be more obvious Regional differentiation. Places with strong government support, strong urban investment operation capabilities, and solid project demand are favored by funding resources to promote the overall improvement of urban functions; areas with insufficient government support, immature projects, and unsound urban investment market operation systems may be No urban renewal projects will be implemented, and naturally they will not be supported by policy finance.

Promote the revitalization of stock plots and balance micro-market supply and demand

For a large-scale project such as urban renewal, it will not only have a great impact on the future of local governments and urban investment platforms, but also have a great impact on the regional structure and micro-market within the city. In the context of "housing to live without speculation" and the promotion of a new type of urbanization, how to ease the pressure on housing when the population further gathers in cities and towns will become a problem that many local governments need to solve.

Therefore, the urban renewal project also bears the important mission of revitalizing the inefficient land in the old urban area and increasing the supply of land and residential functions. In the process of urban renewal, not only vacated land can be used for redevelopment, but also existing non-residential buildings can be repaired and converted into rental housing for external rental; in the future land supply plan, the local government will also introduce rental housing Dedicated plots continue to channel the housing needs of the population.

From this perspective, there are many tasks that urban renewal can help localities accomplish. All localities can adapt to local conditions, use urban renewal models flexibly, and use policy funds and financial tools to achieve the region’s development goals during the 14th Five-Year Plan period. . Editor/Xu Shengpeng