More detailed policies will be releases to improve the business environment and promote PPP through innovation.
Many provinces and municipalities have released the statistics on private investments in the first seven months. Driven by policies, private investments maintained growth in many provinces, but the growth is still lower than the growth in fixed asset investments. The proportion of private investments in certain regions has decreased. The National Development and Reform Commission (NDRC) indicated that it will further support private investments in the future. It will promote the sustainable development of private investments through implementing supporting policies, reducing investment accesses and improving the environment for private investments.
Guizhou Province held a video and telephone conference on promoting effective and private investments recently. Fixed asset investments reached nearly 690 billion yuan in the first seven months, increasing 20.6 percent. It will further vitalize private investments, investments with mixed ownership and other social investments and improve the PPP model to attract more social investments into infrastructure, education, medical care and other social services sectors. Anhui reported private investments of more than 900 billion yuan in the first half, increasing 6.8 percent year on year.
Meanwhile, Shandong reported private investments of over 2.2 trillion yuan in the first seven months, accounting for 74.3 percent of all investments and 2.1 percentage points lower than the same period of last year.
It is learnt that 17 trillion yuan of private investments were reported in the first half across the country, representing an increase of 7.2 percent year on year and 4.4 percentage points higher than the same period of last year but 1.4 percentage points lower than the growth of national investments. The manufacturing industry reported private investments of 7.5 trillion yuan, representing an increase of 5.6 percent year on year and 1.6 percentage points lower than the overall growth in private investments. The private investments in the manufacturing industry enjoy a high volume, a high proportion and a low proportion, which affected the growth of private investments. In terms of specific regions, the eastern region reported a private investment of 8 trillion yuan in the first half, increasing 9.3 percent. The central region reported 5 trillion yuan, increasing 8.6 percent. The western regions reported 3.3 trillion yuan, increasing 6 percent. The northeastern region reported 754.4 billion yuan, decreasing 12.3 percent year on year. Private investments recorded imbalanced growth.
Experts and analysts believe that many factors contributed to the low growth in private investments. Financing difficulties, the high financing cost and insufficient coordinated policies are main reasons. Besides, the business environment has to be improved and the innovation ability of private enterprises has to be strengthened.
China’s private investments growth is still lower than the fixed assets investments growth, indicated Zhu Baoliang, an economist at the State Information Center. It reflected the response of private investments to the economic transformation, the weak market demand and the excessive capacities. On the one hand, the costs of enterprise taxes and fees, energy, raw materials and logistics are still higher, which increased the production cost of the infrastructure industry. On the other hand, enterprises still face financing difficulties and high costs and other problems in the legal system construction. Private enterprises are not confident in making investments.
Under such background, the executive meeting of the State Council proposed further measures in vitalizing private investments and the orientation of promoting the sustainable and healthy development of the economy.
The NDRC will further implement policies on promoting private investments and introduce more detailed policies to improve the business environment for enterprises and vitalize private investments, said Meng Wei, spokeswoman of the NDRC. Meanwhile, it will make innovations in promoting the PPP model to attract more private investments.
Translated by Star Zhang
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