National Development and Reform Commission: Government Investment Funds Must Not Increase Local Governments' Hidden Debt through Indirect Means

　　Grande Summit July 30th｜The National Development and Reform Commission has publicly sought opinions on the "Guidelines for the Layout of Government Investment Funds and Orientation Work" and the "Strengthened Guidelines for the Investment Orientation Management of Government Investment Funds". Among them, the "Guidelines for the Layout of Government Investment Funds and Orientation Work" states that government investment funds should control individual enterprise investments by limiting the amount or proportion, and clearly define it in the establishment plan or relevant legal documents. Government investment funds must not increase local governments' hidden debt through indirect means such as convertible bonds, except for mergers and acquisitions, targeted increases, and strategic sales. They must not engage in open market transactions of stocks, and may not directly or indirectly engage in derivative products such as futures, nor provide guarantees to enterprises or projects outside of the invested companies. Fund regulatory departments have separate regulations that apply.