Efforts to spur private investment in pipeline

China will roll out a series of concrete steps to further boost private investment, with senior officials on Tuesday pledging stronger policy support, better financing channels and wider market access for private enterprises to participate in major projects across key sectors such as infrastructure and energy.

They said more measures will be taken to improve the investment and financing service platform, expand the issuance of infrastructure real estate investment trusts (REITs) for private investment projects, and build a fairer, more predictable business environment to sustain long-term confidence among private investors.

Their remarks came after the General Office of the State Council unveiled on Monday Several Measures on Further Promoting the Development of Private Investment, which outlines 13 targeted measures to expand market access, remove constraints and strengthen safeguards for private investors.

For projects in key sectors such as railways and nuclear power, which require State-level approval (verification) and have certain revenue potential, private capital will be encouraged and supported to participate, with specific requirements such as shareholding ratios clearly defined, according to the document.

Guan Peng, deputy director of the Department of Fixed Asset Investment at the National Development and Reform Commission, said private investment is "an important barometer of economic vitality and plays a key role in stabilizing growth, employment and expectations".

The new document will "send a clear signal to fully unleash the potential of private investment", Guan said at a news conference in Beijing on Tuesday.

In recent years, the NDRC has continued to promote the participation of private capital in major projects such as nuclear power, with private stakes in some projects reaching as high as 20 percent.

"While encouraging private capital participation in key projects, we also equally support all types of market entities to participate, fostering complementary advantages and common development among diverse forms of ownership," he said.

Official data showed that although private investment has slowed this year due to changes in the international environment and adjustments in the real estate market, private investment — excluding property investment — grew 2.1 percent year-on-year in the first three quarters, with private investment increasing by 7 percent in infrastructure, and by 3.2 percent in manufacturing.

To improve financing channels, Guan said the NDRC will build a national investment and financing service platform, enhance connections with credit information systems and "more precisely allocate credit resources to private enterprises".

So far, the NDRC has recommended a total of 105 infrastructure REITs projects to the China Securities Regulatory Commission, of which 83 have been issued and listed, raising 207 billion yuan ($29 billion) and are expected to drive over 1 trillion yuan of new project investments. Of these, 18 are private-investment projects, with 14 already listed, raising nearly 30 billion yuan in total.

Guan said the NDRC will work to further expand the infrastructure REIT market, strengthen coordination services for private-investment projects, and strictly ensure the quality of underlying assets while supporting more qualified private projects to list.

Ling Zhongguo, deputy director of the NDRC's Bureau of Private Economy, said efforts will be made to smoothen investment channels for private businesses, and effectively help them solve practical difficulties and problems.

"We will further improve regular communication mechanisms between government and enterprises, strengthen coordination, and solidly promote the implementation of the Private Economy Promotion Law to facilitate high-quality development of the private investment," Ling said.

Going forward, the country will further strengthen policy support to attract private capital into the energy sector, and improve the long-term mechanisms for private enterprises to participate in major projects such as nuclear power, hydropower and cross-provincial and cross-regional direct-current transmission channels, said Xu Xin, deputy director of the department of legal and institutional reform at the National Energy Administration.