The differences are as follows:
1. Project capital refers to the amount of capital subscribed by investors in the total investment of the construction project. For construction projects, it is non-debt funds. The project legal person will not bear any interest and debt on this part of the funds;
2. Investors can enjoy the owner's rights and interests in accordance with the law according to the proportion of their capital contribution, and can also transfer their capital contribution and corresponding rights and interests, but they may not transfer it in any way way to withdraw.
3. The total investment of an investment project refers to the total cost required to complete and put the proposed project into operation. The total investment in the project consists of two parts: construction investment (including interest during the construction period) and working capital.
4. Project investment is a long-term investment behavior that targets specific projects and is directly related to new projects or renovation projects.
5. Project investment can be further subdivided into simple fixed asset investment and complete industrial investment projects according to its content.
Extended information
Methods of investment in project capital. Project investment capital can be invested in currency, or in kind, industrial property rights, non-patented technology, land use rights, etc., but The property must be evaluated and priced by a qualified asset appraisal agency in accordance with laws and regulations. The proportion of capital contribution based on industrial property rights and non-patented technology shall not exceed 20% of the total capital of the investment project, except where the state has special regulations on the use of high-tech achievements.
Capital Regulations for Real Estate Projects
Capital Funds for Real Estate Projects "Urban Real Estate Development and Operation Management Regulations" stipulates: "Real estate development projects shall establish a capital system, and the capital shall account for 50% of the total project investment." The proportion shall not be less than 20%." Real estate development projects implement a capital system, and stipulate that real estate development companies must have a certain proportion of capital when undertaking projects, which can effectively prevent irregular behaviors of some companies and reduce the occurrence of "unfinished" real estate projects.
On May 25, 2009, the State Council issued the "Notice on Adjusting the Capital Ratio of Fixed Asset Investment Projects" which further clarified that the minimum capital ratio for affordable housing and ordinary commercial housing projects is 20% , the minimum capital ratio for other real estate development projects is 30%.
Baidu Encyclopedia-Capital contribution methods for investment projects