China unveils new measures to boost private investment

China on Monday introduced a package of measures to promote the development of private investment.

For key projects in areas including rail and nuclear power that require approval or verification from relevant departments and have a certain level of returns, the participation of private capital is supported and requirements such as shareholding ratios should be clearly defined, according to a notice released by the General Office of the State Council.

Private capital is also encouraged to participate in the construction and operation of some new urban infrastructure projects, per the notice.

Additionally, efforts will be made to remove unreasonable access restrictions for business entities in the services sectors.

The notice also focuses on implementing a special action for the digital empowerment of small and medium-sized enterprises, and on allowing more qualified private investment projects to issue real estate investment trusts in the infrastructure sector.

These measures address the concerns of private enterprises by focusing on expanding access, removing bottlenecks and strengthening guarantees, thereby better stimulating the internal driving force of private investment, said Ma Shuang, a professor at the University of International Business and Economics.