Agencia EFE:

As for my question, private investment has been maintained at a lower level when compared with that of the past. Does this trigger your concern?

Sheng Laiyun:

First, as seen from the situation in the first three quarters, private investment has undergone positive changes. The growth rate of private investment for the first three quarters stood at 2.5 percent, 0.4 percentage points higher than that for the period between January and August, while that for September alone was 4.5 percent, 2.2 percentage points higher than the month before. This is a sign that private investment is steadily expanding, and this is a good phenomenon. The market environment has been improving lately, so has corporate profit and the factory price of industrial goods; these improvements have facilitated the rise of private investment in the corporate sector, which is willing to expand its reproduction scale when seeing improving market conditions.

The second factor for the recovery, which is also very important, is that the government has increased its efforts at reform and its support for private investment. Since the beginning of the year, the government has enacted several policies and measures for promoting the healthy development of private investment. In addition, the State Council and other agencies have performed thorough inspections, especially of the sectors that are supposed to streamline administration and decentralizing powers, loosen control and improve services, to remove the limits that undermine the growth of private investment. For example, the government is promoting the PPP [public-private partnership], hoping to attract more private funding for infrastructure projects. These measure have all helped the steady rise of private investment.

Of course, we also realize that the growth of private investment is still lower than that for other sectors. Although climbing back for the past two months, the growth rate for Q3 is a mere 2.5 percent. The main reason for this is that the overall situation, including excessive capacity, has not fully eased despite slight amelioration; in addition, international economic recovery has also been sluggish, noticeably affecting China's exports. China is experiencing a critical period for its economic restructuring. Some enterprises are still hesitating to make the next move, out of concerns for corporate safety. Therefore, we should continue to deepen reform, especially on implementation of policies on private investment, so as to create a favorable environment and conditions for the continuous rise of private investment. Thank you.

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