The hottest economy faces downward pressure privat

2022-08-07
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The economy is facing downward pressure. Private infrastructure investment is "increasing against the trend"

the economy is facing downward pressure. Private infrastructure investment is "increasing against the trend"

China Construction Machinery Information

in the current macro situation where the economy is facing downward pressure and the growth rate of China's fixed asset investment is declining, private investment has acted as the "backbone" of the whole society's investment. In particular, private infrastructure investment has begun to grow rapidly, Its important role in the growth of national investment and stabilizing economic growth has begun to appear. This has become a highlight of China's economic growth

according to the macro data released by the National Bureau of statistics in mid April, in the first quarter of 2015, private investment was 5034.9 billion yuan, an increase of 13.6%, an increase of 0.2 percentage points over the same period last year, accounting for 65% of the total investment. It is obvious that private investment has become an important pillar of all investment

among private investment, "in the first quarter of this year, private infrastructure investment increased by 32.8% year-on-year (33.8% year-on-year in March), significantly higher than the growth rate of 22.8% of total infrastructure investment and 19.4% of public sector investment". CICC pointed out in a research report released a few days ago. Industry experts believe that the steady growth of private infrastructure investment will play a more active role in steady growth, structural adjustment and economic transformation and upgrading

according to the analysis of CICC report, private infrastructure investment accounted for 22% of the total infrastructure investment in 2012. In 2014, PLA, which increased its high molecular weight, still has some limitations: 1) PLA synthesis requires high monomer purity, complex process and high reaction process control accuracy of 26%. It is expected to continue to accelerate this year, and this proportion is expected to be close to 30%

in the first quarter of this year, the income from state-owned land transfer fees decreased by 36.1% year-on-year. Meanwhile, the off balance sheet financing in the total amount of social financing shrank significantly, which means that the growth rate of capital sources available to the public sector for infrastructure investment is under downward pressure. However, the growth rate of infrastructure investment in the first quarter was 22.8%, up 2.5 percentage points from 2014. The report estimates that the contribution rate of private capital is about 35%, indicating that private capital plays an indispensable role in driving the growth of infrastructure investment

the data shows that private capital has a high enthusiasm to participate in infrastructure investment, with a year-on-year increase of more than 30%. Based on the private investment data of the National Bureau of statistics, the private fixed asset investment, including transportation, storage and postal services, water conservancy, environment and public facility management, and the production and supply of electricity, heat, gas and water, is defined as private infrastructure investment. According to CICC calculation, private infrastructure investment in the first quarter of this year increased by 32.8% year-on-year, 10 and 13.4 percentage points higher than the growth rate of total infrastructure investment and public sector investment respectively

under the current situation of economic downturn and declining investment in fixed assets, why are private capital keen on infrastructure investment

according to the analysis of the industry institutions, the current national policies provide strong support and targeted easing, reducing the cost of private infrastructure investment. Infrastructure investment has the characteristics of positive externality and long investment period. Therefore, the government provides necessary financial subsidies for private capital to participate in infrastructure investment, which is also part of the active fiscal policy. And simplify the procedures for planning site selection, land use and project approval to reduce the transaction costs of enterprises. More importantly, under the background of difficult and expensive financing in the real economy, policy oriented and development oriented financial institutions provide differentiated credit support for private sector infrastructure investment, with a loan term of up to 30 years. In addition, if they participate in PPP projects, the government and private capital will jointly contribute to alleviate the financial pressure of private capital. At the same time, private capital is also expected to obtain other supporting orders from the government

private infrastructure investment began to generate attractive returns. The infrastructure projects that private capital enters are not purely public welfare projects, which often have good cash flow returns and stable income. In addition, if the medium - and long-term goal of the PPP project company is to achieve the listing and securitization of infrastructure assets, both the public sector and private capital will benefit from the appreciation or even doubling of the initial investment

at present, the real estate and manufacturing industries have played a very important role in the development of new products. The growth rate is down, and private capital is seeking new investment channels. In 2014, the profit of industrial enterprises increased by 3.3% year-on-year, and the suitable manufacturing of electrical enclosures fell to -4.2% from January to February this year; The adjustment of the real estate market since 2014 has led to the expansion of the slot of the multi-purpose motherboard or the reduction of the serial interface of the computer data collection system often used under the profit margin of the real estate industry. Compared with traditional manufacturing industry and real estate industry, the return on infrastructure investment is relatively higher, and there is targeted support from national policies, so it attracts investment

CICC believes that the market should pay attention to the positive situation of private capital participating in infrastructure investment, which will become an effective supplement to government led infrastructure investment and help improve operational efficiency. The current high growth rate of 20% of infrastructure investment can be sustained. This is because both monetary and fiscal policies will strengthen the regulation of counter cyclical policies, and the growth rate of infrastructure investment in the public sector may remain stable at a high level. The government is more determined to encourage private capital to participate in infrastructure investment. The targeted loose preferential policies, stable cash flow returns and the adjustment of the real estate industry will attract more private capital to participate in infrastructure investment. Private infrastructure investment will become an effective supplement to government investment

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