Overseas investment

Chinese Private Capital Allowed into Government-led Projects

2014-04-30 10:10:50

According to an official statement issued after a State Council executive meeting on April 23,China will allow private capital to fund some infrastructure and energy projects that were previously dominated by the government and state-owned enterprises.

The move aims to accelerate reform of the country's investment and financing mechanism and to push forward the diversification of investing entities.In the first batch, the government will roll out 80 pilot projects in several fields, including transportation infrastructure, new-generation information infrastructure, major clean energy projects, oil and gas pipelines, coal, chemical and petrochemical industries.

The projects will be open to public bidding, and the government encourages the participation of private capital in the construction and operations of those projects through joint ventures, sole proprietorship and franchise.