Last year, the renovation of old urban residential areas boosted investment by nearly one trillion yuan-＂reforming＂ new investment space.

The renovation of old urban residential areas is both a livelihood project and a development project, which contains huge investment potential. In 2020, China will start to renovate 40,300 old urban communities, which will directly and indirectly stimulate nearly one trillion yuan of renovation investment. It can also incite residents’ indoor renovation, decoration, home appliance renovation, etc., and drive the development of many industries, which has an important supporting role in stabilizing investment growth.

Although the renovation of old urban residential areas is a "rich mine" for investment, there are also problems such as large capital demand and difficulty in forming a reasonable return mechanism. At present, all localities and departments are actively exploring the establishment of a reasonable sharing mechanism between government departments, residents and social forces, and raising funds for renovation through multiple channels.

Reasonable implementation of residents’ responsibility for capital contribution —— According to the principle of "who benefits and who contributes", actively promote residents’ participation in the renovation, which can be implemented by means of direct capital contribution, use of special maintenance funds for housing (supplementary construction and renewal), and transfer of community public benefits.

The financial funds are "four to two thousand pounds"-in 2020, the task of transforming old urban communities will be doubled, with 54.3 billion yuan of investment in the central budget and 30.7 billion yuan of special funds for affordable housing projects in the central government to guide and promote related transformation investments.

Social forces add firewood and raise salary-implementing tax and fee reduction policies to make social capital go into battle lightly, ensuring long-term operation of enterprises through government procurement, paid use of new facilities, and implementation of asset rights and interests. The scientific and reasonable investment and financing model has stimulated the enthusiasm of participating enterprises.

The active assistance of the financial system-accelerating the transformation of old urban communities cannot be separated from strong financial support. In 2020, China Development Bank and China Construction Bank signed a strategic cooperation agreement with nine cities in five provinces, which will provide a total of 436 billion yuan in loans in the next five years, focusing on supporting the renovation projects of old urban communities with the participation of market forces.

With the participation of many parties and concerted efforts, the transformation of old urban communities is progressing steadily, which is releasing huge investment potential.

Qingdao: replacing compensation with awards, and the financial funds are "four or two"

Recently, Wang Zhengchuan, a resident of Shunde Garden Community in jiaozhou city, Qingdao, Shandong Province, became more practical when cooking. "After the renovation, most gas pipelines have been moved out of the house, and new pipelines have been replaced in public areas. The’ face’ looks good and the’ lining’ is safe!"

"According to estimates, including Shunde Garden, it takes more than 4 million yuan to transform the gas in three communities." In May last year, after Qingdao Xinao Jiaocheng Gas Company received the project, the unexpected funds once worried the general manager Dong Jiaqiu.

Jiaozhou city’s policy of replacing compensation with awards has solved the urgent need! "The central financial award funds and local financial funds add up to about 2 million yuan, and the pressure is reduced by half." Dong Jiaqiu’s hanging heart was put down.

Financial funds, while focusing on supporting basic renovation such as plumbing, electric heating, etc., also give full play to the guiding role of "four to two", and attract social capital to participate in the renovation of old residential areas through project capital injection and loan discount.

Chen Gang, a member of the Party Group of jiaozhou city Construction Bureau, said that in the next step, Jiaozhou intends to support the large-scale implementation and operation entities to participate in the transformation in a market-oriented way. "At present, Jiaozhou Finance has injected 100 million yuan into the project capital, and local state-owned enterprises and private enterprises jointly set up a mixed-ownership company to be responsible for the design, construction and financing of the transformation of old residential areas in the city."

"The scale of a single renovation project is small, the income is not high, and the financing ability is limited. The main body of large-scale implementation operation can achieve the balance of funds by reasonably expanding the renovation implementation unit, promoting the joint transformation of adjacent communities and surrounding areas, and strengthening the co-construction and sharing of service facilities and public spaces." Ding Shugeng, deputy director of the Real Estate Development Center of Qingdao Housing and Urban-Rural Development Bureau, said.

As soon as the capital bottleneck is broken, the pace of transformation will be accelerated, and the pulling effect on investment will gradually emerge.

"We are an export-oriented enterprise, and the original foreign trade order volume was as high as 80%, because the epidemic situation was greatly affected. In the past few months, the renovation of old communities has placed orders to help us recover quickly. " Yang Wenhao, director of Nedco Elevator (Qingdao) Co., Ltd. said happily. In 2020, 111 old residential areas in Qingdao will "look new", with a total investment of about 700 million yuan. The renovation of Shunde Garden alone can stimulate social investment of tens of millions of yuan and benefit more than 10 related enterprises.

Suzhou: Revitalize resources and attract social capital to invest.

500 million yuan! Wang Xiangzhi, general manager of Suzhou Historical and Cultural City Protection and Renewal Real Estate Co., Ltd., frowned when he just received the task of renovating the old renovation demonstration area of No.32 neighborhood in gusu district, Suzhou, Jiangsu. "With so much investment, the pressure of self-financing alone is too great."

"Why not use gusu district’s traditional resources to build cultural brands and attract other enterprises to participate together?" The proposal of Qian Yujing, director of Suzhou Housing Expropriation Office, made Wang Xiangzhi suddenly enlightened.

You know, gusu district is rich in historical and cultural relics, and a large number of ancient buildings, old houses, ancient streets and alleys are distributed among them. This can bring "wealth" to the transformation of old communities. To discuss plans and seek cooperation, Wang Xiangzhi contacted many enterprises with investment intentions. Not long ago, another Shanghai enterprise took the initiative to sign a contract to integrate and utilize the existing assets of the district to develop boutique hotel projects to provide customized experience services for tourists. "The transformation of historical and cultural blocks requires both improving functions and inheriting history. After the transformation, not only the cultural heritage is more prominent, but also the environmental quality of the community is improved. It can also stimulate at least 30 million yuan of investment and provide jobs for hundreds of people. " Wang Xiangzhi said that in addition, the company can also collect a certain management fee for the renovation of old communities. This model provides a model for the follow-up multi-agents to carry out the protection of ancient cities and the renovation of old communities. "By integrating existing resources and creating more dynamic cultural experience projects, the investment is alive and the pressure on renovation funds can be reduced a lot."

Revitalizing resources and "making money on the spot" can effectively solve the difficulty of raising funds for the renovation of old communities; Moreover, through the construction of postal express terminal comprehensive service stations, sports and fitness facilities and other community service facilities, the improvement and upgrading of old communities can also attract all kinds of social forces to participate in investment. Following this line of thinking, Suzhou has gained many successful cases-

An old residential area in Wujiang District, a rookie station was put into use, providing residents with services such as express delivery, parcel carton recycling, clothes dry cleaning and so on. Zheng Siya, the person in charge of the rookie station, said that the community provided them with an idle building of more than 70 square meters and was free of rent for a certain period of time. "Each station can drive 3 to 5 people to find jobs."

In the old community of Guotai No.1 Village, the community cage football field invested by Suzhou Changchi Sports Science and Technology Company will become a good place for nearby residents to exercise. "After the completion, the enterprise can independently contract for 10 years, and the income sources include rents such as football fields, community parking spaces, public houses and advertising spaces, and the investment cost can be recovered in about 6 years." Lu Zhiping, chairman of Yinshanhu Group, who is in charge of community renovation, said.

"By revitalizing the idle resources of the community and introducing community service facilities for upgrading, it can not only enrich the service supply, make the community more livable, but also enable investment operators to obtain reasonable investment income and achieve a win-win situation." Ge Xin, deputy director of Suzhou Housing and Urban-Rural Development Bureau, said that Suzhou plans to renovate 80 old residential areas this year, benefiting more than 25,500 households, with a planned investment of nearly 1.2 billion yuan.

Bengbu: actively helping, financial institutions send funds "timely rain"

"The loan of the Agricultural Bank of China has pressed the’ fast forward button’ for the transformation of the community." Looking at the makeover of the metal company community built in the 1990s, Wang Wenqiang, secretary of the Party Working Committee of Weisi Street, Bengbu Yuhui District, Anhui Province, breathed a sigh of relief: "Residents have a strong willingness to rebuild, but in the past, construction was delayed due to lack of funds, and we were also anxious."

Last year, 874 old residential areas in Anhui completed renovation, with a total investment of more than 3 billion yuan, including 34 residential areas in Bengbu City. However, the financial funds are limited. In order to incite more capital participation, it is inseparable from the efficient docking of government departments, banks and enterprises. In 2020, the Bengbu Branch of the Agricultural Bank of China issued a total of 310 million yuan in loans, which sent funds "timely rain" for the renovation of 178 communities, including 130 million yuan in loans for the renovation project of Yuhui District.

"130 million yuan loan, including interest rate concessions, can save 900,000 yuan a year; If the capital ratio is lowered by 10 percentage points, enterprises can keep more than 10 million yuan in their hands; The repayment period has also been extended from three years to six years … "Wang Bo, head of the business department of Bengbu Branch of Agricultural Bank of China, said that the renovation of old residential areas has a large investment scale and a long payback period, and enterprises can’t wait to" break a penny into eight petals ",while the bank’s tailor-made and more flexible loan scheme has greatly reduced the burden on enterprises.

Not only that, but the loan process is also being streamlined. Wang Bo introduced that in the past, similar loan business required secondary branches to dock first, and then went to the site for investigation after the provincial branches passed the preliminary examination; At present, the investigation and review link is led by the provincial branch to directly carry out on-site evaluation, and the special loan business will be reviewed immediately. "At present, the efficiency of loan approval can be shortened from nearly one month to half a month."

The financial pressure of construction enterprises has eased, and how can the enthusiasm of banks be improved? "Some communities are small in scale and cannot generate income; However, some communities have wide space utilization, strong functional radiation and strong cash flow. " Wang Peiran, general manager of the Financial Customer Department of China Merchants Bank Hefei Branch, said that when China Merchants Bank issued loans, it considered bundling different communities together and providing financing support through overall credit, which not only helped to enhance the willingness of enterprises to participate in the transformation, but also helped to reduce the risk of bank credit.(Reporter Ding Yiting, Liu Shiyao, Wang Weijian, Wang Pei, Xu Jing)