On January 20, the Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development issued a notice on several measures to further support urban renewal actions.

The notice mentions the need to improve diversified investment and financing methods. It calls for increasing support from central budget investments and providing assistance to eligible projects through ultra-long-term special government bonds.

Central government finances are to support the implementation of urban renewal actions. Local governments are required to increase fiscal input, promote the integration and coordinated use of related funds, and support eligible urban renewal projects by issuing special local government bonds, provided that debt risks are controllable, while strictly prohibiting illegal and non-compliant debt financing.

The notice also emphasizes implementing tax and fee reduction policies related to urban renewal. It encourages various types of Financial Institutions to actively participate in urban renewal under the principles of legality, compliance, risk controllability, and commercial sustainability, while strengthening credit support.

Furthermore, efforts will be made to improve market-oriented investment and financing models, attract social capital to participate in urban renewal, and promote the issuance of Real Estate Investment Trusts (REITs) in the infrastructure sector, asset securitization products, and corporate credit bonds for eligible projects.