China will further release the value of idle assets and expand effective investment, according to a circular issued by the State Council on May 25.

Large-scale infrastructure projects with considerable profits or great profit potential are the main targets of idle assets to be tapped, which include transportation, water conservancy, clean energy, government-subsidized rental housing, public facilities, ecological protection, industrial parks, warehouse logistics, and tourism, the circular said.

The circular urged focusing on regions where construction tasks are strenuous, with large-scale and high-quality assets. Regions with high pressure to maintain fiscal balance and high local government debt will also be prioritized.

State-owned enterprises with large infrastructure idle assets, heavy construction tasks and high debt ratios will be guided to activate idle assets as a way to maintain and appreciate State-owned assets, prevent debt risks, raise construction funds and prioritize asset structure. Private enterprises are also encouraged to participate, according to the circular.

China will promote the healthy development of real estate investment trusts (REITs) in infrastructure field, and public-private partnerships (PPP) will proceed in a standardized and orderly manner. Renovation and extension of idle projects will be actively explored.

Further policy support will be provided in tapping the potential of idle assets, according to the circular. It also said that capital recovered from idle assets should be well managed.

Risk prevention measures will be strictly implemented, the circular said.