In order to implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China

the Ministry of Water Resources held a party group meeting to emphasize the need to promote the building of the water rights trading market

strengthen the reform of the water conservancy investment and financing system

and promote high-quality development of water conservancy. Water-extracting loan financing is an important means to achieve this goal. In the water rights trading market

“water-extracting loan” financing activities are one of the important paths to activate water resources assets and develop green finance. Using water-extracting rights as collateral can help companies enhance the value of their water resources assets and solve financing difficulties. This article summarizes the current development status of China's “water-extracting loan” financing model

and concludes that there are still problems in the operation of “water-extracting loan”

such as vague legal definition of water-extracting rights

inconsistent financing guarantee methods

inadequate financing business supervision mechanisms

and insufficient incentive measures. Based on this

it is proposed that in the future

legislation should be improved to clarify the legal attributes of water rights

financing guarantee methods should be standardized

regulatory systems and incentive mechanisms should be improved to effectively promotewater conservancy investment and financing reforms.