It is understood that in the "Central Enterprises Entering Sichuan" event in May this year, more than 60 central enterprises signed projects with Sichuan with a total investment of 272.2 billion yuan, of which 97 projects had an investment of over 500 million yuan. At the World Chinese Entrepreneurs Convention in September, Sichuan concentrated on signing 104 cooperation projects with a total investment of 109.1 billion yuan.

　　On October 22, Sichuan Province released the "List of Major Investment Projects in Sichuan Province" (2013-2014), stating that in the next two years, Sichuan plans to implement 4.26 trillion yuan of major investment projects, involving 2,336 projects.

　　It is reported that these include 663 major infrastructure investment projects with a total investment of 1.48 trillion yuan; 1,349 major industrial investment projects with a total investment of 2.42 trillion yuan; 265 major livelihood projects and social undertakings with a total investment of 314.7 billion yuan; and 59 major ecological construction and environmental protection projects with a total investment of 37.6 billion yuan.

　　As soon as the news of the Sichuan version of the trillion-yuan investment was released, it immediately attracted the attention of many industry insiders. Many enterprises cheered and celebrated, hoping to get a share of the new four trillion and adjust their development strategies according to Sichuan's investment plan.

　　Among the 2,336 major investment projects launched by Sichuan's four trillion, 663 are major infrastructure projects, which have attracted much attention due to the large investment amount. These include the Ya'an to Kangding Expressway with a total investment of 23.2 billion yuan; the Wenchuan to Ma'erkang Expressway with a total investment of 30.1 billion yuan; and the Chengdu Second Ring Expressway, with a total length of about 223 kilometers, a design speed of 100 kilometers per hour, and a total investment of 28.5587 billion yuan.

　　These major investment projects revolve around the national implementation of the new round of Western Development, accelerating the construction of the Chengdu-Chongqing Economic Zone, and accelerating the construction of the Tianfu New Area. Specifically, a batch of infrastructure projects such as the Ya'an-Kangding Expressway (total investment 23.2 billion yuan), Chengdu Second Ring Expressway (total investment 28.6 billion yuan), Nanda Liang Expressway (total investment 10.8 billion yuan), Ganzi "Two Roads and One Tunnel" project (total investment 11.4 billion yuan), Chengdu-Guiyang Railway (total investment 38 billion yuan), Chengdu-Kunming Railway (total investment 19.9 billion yuan), Chengdu New Airport (total investment 26.5 billion yuan), and Tianfu New Area "Three Vertical and One Horizontal" major transportation projects (total investment 28.9 billion yuan) have been listed as key projects to be promoted in Sichuan this year and next, and implementation efforts will be increased. Tang Limin, director of the Sichuan Provincial Development and Reform Commission, said that Sichuan will strive to activate private investment and further broaden the fields and scope of private investment.

　　Xinzhu Co., Ltd.: Xinjin Rail Transit Project Included in the 4 Trillion

　　As the only rail transit equipment manufacturer in Sichuan, Xinzhu Co., Ltd.'s "Xinjin Xinzhu Road and Bridge Rail Transit Materials Phase I Project" has now been included in the 4 trillion investment plan.

　　On the 20th, a relevant person in charge of Xinzhu Co., Ltd. told reporters: "Sichuan's 4 trillion investment plan has a high degree of overlap with the company's main business, and the company is expected to benefit from it."

　　In addition to the production of original bridge components, mixing equipment, special vehicles and other high-speed rail-related equipment, as early as 2008, Xinzhu Co., Ltd. began independent research and development and technical reserves for urban low-floor vehicle-related technologies. Its controlled subsidiary, Changke Xinzhu, also introduced modern tram-related technology from CNR Changchun Railway Vehicles Co., Ltd. in 2012. In 2013, Xinzhu Co., Ltd. also began trial production of trams in Sichuan Province.

　　Recently, Xinzhu Co., Ltd.'s modern tram manufacturing project has been listed in the first batch of strategic emerging projects in Sichuan Province in 2013 and will receive a special fund of 36 million yuan in loan interest subsidies from the Sichuan Provincial Department of Finance. "Our Xinjin project has completed business registration and other procedures, and we will soon accelerate the preliminary civil engineering work," said a relevant person in charge of the company.

　　Sichuan Expressway: Accelerating Diversification and Focusing on Promoting Two Expressway Constructions

　　In the 4 trillion major investments released by Sichuan Province for this year and next, a total of 1.48 trillion yuan will be invested in major infrastructure projects. Among them, the Chengdu New Airport, Tianfu New Area "Three Vertical and One Horizontal" major transportation projects, and multiple regional expressways and other major transportation infrastructure projects have been listed as key projects to be promoted.

　　As the only listed company in Sichuan Province whose main business is investing in, constructing, operating and managing high-grade highway infrastructure projects within the province, as well as other toll road-related businesses, Sichuan Expressway's two expressways currently under construction—Suining to Guang'an Expressway and Suining to Xichong Expressway—have both been included in Sichuan Province's key infrastructure projects.

　　Regarding the new round of investment boom in Sichuan Province, a person from Sichuan Expressway said that on the one hand, this will drive the growth of transportation demand in the region and have a positive impact on the toll revenue of the company's expressways; on the other hand, it will also bring more investment opportunities to the company and promote its overall operations.

　　According to relevant company personnel, the Suiguang and Suixi expressway projects are built using the BOT model. The two expressways have a total length of about 165 kilometers. The project funds consist of project capital and bank loans, with project capital accounting for 30% of the total investment and the remaining 70% solved by bank loans. At the end of last year, through public bidding, the company signed construction contracts totaling 6.753 billion yuan with the winning bidders for civil engineering construction. As of June 30, the Suiguang-Suixi Expressway BOT project had completed an accumulated investment of approximately 1.064 billion yuan in the first half of this year, and an accumulated investment of approximately 1.286 billion yuan since the start of construction, accounting for about 10.82% of the project's estimated total investment. It is expected that the Suiguang-Suixi Expressway will be completed and opened to traffic in December 2015, which will further expand the company's asset scale and enhance its core competitiveness.

　　Data shows that at present, Sichuan Expressway mainly owns all or most of the rights and interests of toll roads located in Sichuan Province, including Chengyu Expressway, Chengya Expressway, Chengle Expressway, Chengren Expressway, Chengbei Exit Expressway, and the under-construction Suiguang Expressway and Suixi Expressway, with a total mileage of about 573 kilometers of completed expressways.

　　Local "Four Trillion" Wave Surges, Financing Becomes the Biggest Challenge

　　The release of Sichuan's 4 trillion investment plan is undoubtedly good news for construction machinery enterprises, but enterprises should realize that under the "Sichuan version of four trillion" investment wave, they must not be blindly optimistic. Before adjusting their development strategies, they need to clearly understand the current industry development situation.

　　Some industry insiders said that if all regions launch large-scale investment plans, the total investment scale will exceed 10 billion yuan. Localities need to develop, but it should also be noted that the industrial pains caused by the previous central government's "four trillion" investment plan have not yet been digested. All regions should learn from the lessons and cautiously launch large-scale infrastructure plans on the premise of conforming to the industrial development structure.

　　More importantly, with such a huge investment scale, the source of funds has become the biggest mystery, especially when local governments are already burdened with heavy debt.

　　Taking Sichuan Province as an example, according to the plan announced by Sichuan Province, the total investment reaches 4.26 trillion yuan, equivalent to 1.77 times Sichuan's 2012 GDP (2,384.98 billion yuan) and 17.59 times the 2012 local public fiscal revenue (242.13 billion yuan). Sichuan Province's total social financing in 2012 was 697.95 billion yuan. A rough calculation shows that Sichuan's "four trillion" investment scale is equivalent to 6.10 times the total social financing of Sichuan Province in 2012. Even if completed in two years, it means that Sichuan Province needs to achieve three times the existing financing scale each year.

　　However, data shows that from 2009 to 2013, Sichuan Province issued local bonds of 18 billion yuan, 18 billion yuan, 13.5 billion yuan, 13.5 billion yuan, and 20 billion yuan respectively, mainly invested in infrastructure construction, ranking first in the country in local bond scale. In the next four years, there will be 47 billion yuan of high debt maturing and needing repayment.

　　Construction cannot stop, and maturing debt still needs to be repaid, ultimately requiring new debt. Some experts said that in recent years, Chinese local governments have spared no effort in using local financial resources for development, and the government's involvement in the economy and finance has become deeper and deeper, which has also made it more difficult for rating agencies to ascertain local assets and debts. If the true situation cannot be clarified, risks will be difficult to control.

　　Under the situation of "smooth investment, difficult financing", enterprises need to cautiously explore the path of development and must not invest blindly.