As China broadens market access for private capital, the growth potential of such investment is gathering pace, with market vitality released at an accelerated speed.
China's efforts to lower market access threshold in sectors like railways and nuclear power have created new opportunities for private capital. The government has made a range of key projects in transportation, water conservancy, energy, and other fields open to private investors. So far, more than 2,000 such projects have attracted private capital, with a total investment exceeding 2.6 trillion yuan (about 367.5 billion U.S. dollars).
In the first 10 months of this year, private investment in infrastructure grew by 4.5 percent year on year. It now accounts for 22.6 percent of all infrastructure investment, one percentage point higher from the same period last year. This trend reflects the continued and growing enthusiasm of private capital to participate in major national projects.
Private investment in China is rapidly expanding into new sectors, with several key regions reporting significant momentum. In south China's Guangdong Province, private equity participation in nuclear power projects has reached 20 percent. Meanwhile, in central China's Henan Province, 53 percent of this year's private investment -- or 530 million yuan (about 75 million U.S. dollars) out of every one billion yuan (about 141 million U.S. dollars) -- has flowed into emerging industries.
Nationwide, data from the first 10 months of the year reveals strong growth in manufacturing. Private investment registered double-digit growth in China's automobile manufacturing industry, as well as in railways, ship building, aerospace, and other transportation equipment manufacturing sectors.
"Next, we will urge relevant departments and local authorities to introduce supporting policies and measures as early as possible, improve the long-term mechanism for private enterprises to participate in major national projects, effectively stimulate the vitality of private investment, and promote its high-quality development," said Guan Peng, deputy director of the Department of Fixed Asset Investment at the National Development and Reform Commission.
Broader market access fuels China's private investment
