China to support private investment, take forward projects with multiple effects to boost effective investment(2)

Demonstration projects to attract private investment will be selected from the 102 major programs set out in the 14th Five-Year Plan, and in identified key areas for development.

Approved transportation, water resources management and other projects must be expedited. Private investment will receive equal treatment in bidding. Specific measures for work-relief programs will be introduced as quickly as possible.

The reform of government functions will be deepened. The procedures required for making private investment will be handled more efficiently. Large projects will be included into local inventories of key projects and given greater support in land use.

All localities must protect the lawful rights and interests of private investors and earnestly honor their policy commitments. The platform economy will be supported in pursuing healthy development. Private capital will be supported in conducting start-up investment.

Financial institutions will be guided toward supporting private investment through refinance or loan renewal. Eligible projects will receive government financing guaranty. Real estate investment trusts (REITs) projects for private investment will be swiftly launched. Private businesses will be encouraged to carry out market-based debt-to-equity swaps.

"It is imperative to work unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. More forceful and effective measures should be adopted to strengthen confidence and anchor expectations. Support will be given to projects with private investment in accordance with laws and regulations," Li said.

Construction of underground multi-purpose utility tunnels has great investment potential and can play a catalytic role. It is a typical project that will deliver multiple gains. Construction of underground multi-purpose utility tunnels will be advanced along with the renovation of dilapidated urban drainage networks.

Well-calibrated planning will be made, policy support stepped up and fee-based returns mechanism improved, to attract private investment. Financial institutions will be guided toward issuing long-term loans. Market-based credit-enhancement support will be provided toward the issuance of debenture bonds by project owners.

"Underground utility tunnels are about what's on the inside of a city, and they must be well-planned in the process of new urbanization. Best practices in this respect should be disseminated, and more funds could be mobilized by supporting the participation of private investment," Li said.