China has unveiled new measures designed to channel private capital into traditionally state-funded infrastructure projects, as Beijing steps up efforts to reduce investment restrictions and bolster the private economy.
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The 13-point document released on Monday by China’s cabinet, the State Council, includes measures to encourage private investment in major projects in a range of sectors – from power generation to transport.
Any project in areas including rail, nuclear power, hydropower, oil and gas pipelines and the water supply that is expected to generate positive financial returns will now be required to include an evaluation detailing the feasibility of attracting private investment when applying for central government approval, according to the document.
“Private capital participation is encouraged and supported, with the specific shareholding ratio determined based on project specifics, private enterprises’ willingness to participate, and relevant policy requirements,” the document stated.
Private investors could have a shareholding of 10 per cent or more in eligible projects, it added.
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Another measure focused on encouraging private investment in local urban infrastructure projects that had the potential to generate a profit.
For Beijing, supporting the private economy has become a major policy focus – a stance it reaffirmed in recently released proposals for its next five-year plan – as policymakers strive to revitalise a sector that remains a key driver of job creation and growth in the Chinese economy.