China to enhance credit support to private investment projects

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BEIJING : China's state planner will step up credit support for projects with private investment, the state-run People's Daily reported on Friday, reinforcing efforts to encourage more private capital investment in major projects.Despite better-than-expected economic growth in the first quarter, the recov

BEIJING : China's state planner will step up credit support for projects with private investment, the state-run People's Daily reported on Friday, reinforcing efforts to encourage more private capital investment in major projects.

Private sector fixed-asset investment only grew 0.6 per cent during January-March from a year earlier while state sector investment jumped 10.0 per cent, official data showed. "In recent years, due to the impacts from the global economic situation and the pandemic, some private firms suffered declining profits, cash flow shortage and inability to reinvest," the newspaper cited the NDRC official as saying.

Some private firms said they were willing to participate in projects in the hope of good yields but there were still"tangible or intangible barriers to the market access".

 

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