The National Development and Reform Commission says they want to attract more private capital for big projects.
China’s state planner has unveiled measures to encourage private investment in infrastructure and strengthen financing for private projects.
The latest announcement on Monday comes after China last week issued guidelines aimed at making the private sector “bigger, better and stronger” amid flagging post-pandemic economic recovery.
The National Development and Reform Commission (NDRC) said in a statement that they want to attract more private capital to participate in the construction of major projects.
The NDRC said a list of sectors ranging from transportation, water, clean energy and advanced manufacturing to agriculture will be open to private investors, according to the statement. More specific details on this will be provided later, it added.
In the past few weeks, investors have been betting on more stimulus measures to support an economy that has begun to rapidly lose momentum after the first post-COVID bounce. However, some piecemeal measures announced by the authorities hurt the markets.
In guidelines released last week, China said it will create a “traffic light” system to clarify areas where private investors can invest.
“The importance of improving private investment must be fully recognized” and the NDRC will strive to maintain the proportion of private fixed-asset investment in all investment at a “reasonable level”, the statement said.
Private fixed-asset investment decreased by 0.2 percent in the first six months from a year earlier, in contrast to an 8.1 percent increase in investment by state entities, official data showed last week, highlighting weak confidence in the private sector.
The NDRC also promised to strengthen financial support for private investment projects.
A special fund from the central government budget will be allocated to the NDRC to provide annual support for 20 cities with high growth in private investment and strong policy implementation, the statement said.
