BEIJING (Reuters) - China issued guidelines on Monday aimed at boosting private investment in manufacturing, including stepping up fiscal support and “innovative financing” for private firms to gear towards greener development and move up the value chain.
The government will support private firms’ fundraising efforts through products such as corporate bonds and asset-backed securities, as well as through fiscal measures such as tax subsidies, according to a statement posted on the industry ministry’s weibo account.
The statement, which was jointly issued by 16 major central government entities including the People’s Bank of China and the Ministry of Finance, also said the country will establish a national fundraising guarantee fund and expand the range of asset collateral that private firms could use for borrowing.
China has struggled to reverse weak private investment, particularly in key sectors such as manufacturing. It has announced various campaigns in a bid to stimulate private participation, including in sectors that have monopolies in industries.
More recently, Beijing has heavily promoted the public-private partnership (PPP) model which channels private money into public infrastructure projects.
In the statement on Monday, it set out eight major tasks to tackle, stressing that private capital will be guided towards shaping the manufacturing sector in the direction of “high end, intelligent, green and more services-oriented”.
China will also ramp up support for private firms in areas of manufacturing that are particularly weak and vulnerable, while encouraging more private involvement in transforming traditional industries via the “internet plus” model.
China is also pushing for private firms to go global and invest in overseas infrastructure projects such as high-speed trains and solar energy products.
Reporting by Beijing Monitoring Desk and Yawen Chen; Editing by Kim Coghill