Private investment is an important link in the development of private economy. In order to further promote private investment, a series of policy measures have recently been intensively implemented: the National Development and Reform Commission and the Ministry of Finance launched a new mechanism to encourage private enterprises to participate in government and social capital cooperation projects, the National Development and Reform Commission clearly strengthened the element guarantee of key private investment projects, Chongqing issued "27" and Guangdong Guangzhou proposed "21" to support the development of private investment. The person in charge of the relevant departments said that the next step will be to promote the implementation of relevant measures as soon as possible and see actual results, do a solid job of promoting projects to private capital, constantly stimulate the vitality of private investment, and continue to expand effective investment.

Local governments accelerated support for the development of private investment

Private investment accounts for more than half of the total investment and is an important part of expanding effective investment. Data show that in 2022, private investment completed 31 trillion yuan, about double that of 2012, accounting for 54.2% of the overall investment.

Since the beginning of this year, the growth of private investment has faced certain pressure. "In the first half of the year, both the growth rate and the share of private investment in overall investment declined." Luo Guosan, director of the fixed Assets Investment Department of the National Development and Reform Commission, said that in response to relevant problems, the National Development and Reform Commission and relevant parties actively introduced measures, and put forward 17 specific measures in July this year from the focus on key areas and improve the guarantee mechanism, and strive to create a good environment to promote the stability of private investment.

Local governments moved faster to follow up and support the development of private investment. In August, Zhejiang introduced 32 measures to promote the high-quality development of the private economy, making it clear that the proportion of the province's "4+1" special fund to invest in private investment projects is not less than 70%; Beijing introduced 57 key projects to private capital in early September. In late September, Jiangsu announced the first batch of 430 major projects to encourage private capital participation, with a total investment of 323.5 billion yuan.

As the relevant measures have taken effect, the decline in private investment has narrowed for two consecutive months recently. "From January to October, private investment fell 0.5 percent year on year, 0.1 percentage point narrower than the first three quarters and 0.2 percentage point narrower than the first eight months." Of this, investment in private projects (excluding investment in real estate development) rose 9.1%, said Luo Yifei, chief statistician at the investment department of the National Bureau of Statistics. By industry, private investment in scientific research and technical services, electricity, heat, gas and water production and supply, and accommodation and catering industries grew faster, up 17.9 percent, 17.4 percent and 10.2 percent, respectively. Private investment in infrastructure grew by 14.2%, 8.3 percentage points higher than total infrastructure investment. Private investment in manufacturing increased by 9.1%, the growth rate picked up for four consecutive months.

We will give full play to the initiative of private capital

How to further stimulate the vitality of private investment? The National Development and Reform Commission recently led the study and formulation of the "Guiding Opinions on the standardized implementation of the new mechanism of cooperation between the government and social capital", "the most prominent feature of the new mechanism is to encourage the participation of private enterprises to the greatest extent." Said Li Chao, deputy director of the Policy Research office of the National Development and Reform Commission.

Li Chao said that the original intention of China to promote cooperation between government and private capital is mainly to introduce private capital and foreign investment in infrastructure and public utilities to improve operational efficiency and management level. To standardize the implementation of the new mechanism for cooperation between the government and private capital is to adhere to the original intention, return to the source, and encourage the participation of private enterprises to the maximum extent. "At present, the structure of private investment is optimizing and adjusting, from January to October, private investment in manufacturing and infrastructure increased by 9.1% and 14.2%, respectively, showing strong investment vitality." The new mechanism clearly gives priority to the participation of private enterprises, which will further mobilize the enthusiasm of private investment and promote the continuous optimization and adjustment of the structure of private investment." Li Chao said.

According to the National Development and Reform Commission, the new mechanism has clarified the List of new (including reconstruction and expansion) projects supporting the participation of private enterprises in franchise operations, and clearly proposed that projects with a high degree of marketization and weak public attributes should be wholly owned or controlled by private enterprises; For projects related to the national economy and people's livelihood and with strong public attributes, the equity ratio of private enterprises shall not be less than 35% in principle; A small number of projects involving national security, strong public attributes and natural monopoly attributes should actively create conditions and support private enterprises to participate.

"We will guide local governments in accordance with the requirements of the new mechanism, standardize and promote new projects of cooperation between the government and private capital, fully mobilize the enthusiasm of private capital, and effectively stimulate the vitality of private investment." Li Chao said.

We will expand market access for private investment in an orderly manner

More measures are being taken to promote private investment. Not long ago, the National Development and Reform Commission set up the Private Economic Development Bureau, and formulating policies and measures to promote the development of private investment is one of its important specific responsibilities.

"Since its establishment, the Private Economic Development Bureau has worked with relevant parties to improve the normal communication and exchange mechanism with private enterprises, strengthen the exchange of experience and mutual learning, and accelerate the research and planning of a number of policy measures." Li Chao said that in the next step, we will continue to improve the system design, build a service platform, expand development space, orderly expand market access for private investment, and support private enterprises to participate in key core technology research, undertake major national science and technology projects, global industrial division of labor and resource allocation, major strategic deployment and other related fields.

At the local level, Chongqing recently proposed 27 measures in terms of specifying the industry sectors that clearly support private investment participation and supporting private investment to revitalize stock assets. Guangzhou focused on solving the practical difficulties and outstanding problems faced by private investment, formulated 21 policies and measures to encourage private investment to participate in the construction of key areas, and strengthened financing support for private investment.

The relevant person in charge of the Guangzhou Municipal Development and Reform Commission said that in view of the strong financing problems of private enterprises, the policy issued this time put forward specific measures from the aspects of improving the financing mechanism, strengthening guidance, broadening channels and invigorating the stock. At the same time, we will clearly increase the promotion of major projects, build an intelligent service platform for private investment, reduce investment and operating costs, establish a mechanism for scheduling and evaluating private investment, further optimize government services, and smooth channels for private investment.

Source: Chinese government website