Fundraising limit raised for shantytown renovations

The limit of fundraising for shantytown renovation projects has been raised to 70 percent of the total investment, according to a notice released by the National Development and Reform Commission at the end of August, China Business News reported on Monday.

The notice said the construction companies in charge of shantytown projects are allowed to apply for the issue of corporate bonds to carry out the projects, with priorities given to shorter examination periods and approval.

In addition, the enterprises are allowed to issue combined bonds containing a portfolio of debt, which were newly launched by China Development Bank for shantytown renovation projects.

In the middle of July, the first combined bond was issued to raise funds for 11 restructuring projects in a region in Yueyang, Hunan province.

At an executive meeting of the State Council at the end of June, Premier Li Keqiang revealed six support measures to speed up the renovation of shanty areas, one of which was to guide financial institutions to offer more credit.