Laws of the People's Republic of China

the State Council on Adjusting

Notice of the State Council on Adjusting the Proportions of Registered Capital in Fixed Asset Investment Projects of Some Industries

No. 13[2004] of the State Council

April 26, 2004

Since this year, the national economy has been maintaining a favorable momentum, the reform and opening has been further carried forward steadily and the social undertakings have been developed in an all-around way. At the same time, those outstanding conflicts existing in the economic operation have become increasingly apparent, which are embodied in such aspects as the over-increase in investment, too many newly started projects, the under-construction scale being too large, and the irrational investment structure. There exists blind investment in industries of steel, electrolytic aluminum and cement, there is serious phenomenon of low-quality repeated construction, the increase rate of development and investment of real estate is too high and the development capital is excessively dependent on bank loans. In order to strengthen the macro regulation, adjust and optimize the economic structure and promote a sound development of the aforesaid industries, the State Council has decided to adjust the proportions of capital money of construction projects in industries of steel, electrolytic aluminum, cement and real estate development as prescribed in the Notice of the State Council on Piloting the System of Registered Capital on Fixed Asset Investment Projects (No. 35 [1996] of the State Council): (1) The proportion of capital money of steel projects shall be raised from 25% or more to 40% or more; (2) The proportion of registered capital of projects of cement, electrolytic aluminum and real estate development (excluding projects of affordable houses) shall be raised from 20% or more to 35% or more.

The relevant provisions of this Notice shall go into effect as of the date of promulgation.