Private Investment in Beijing Still Very Limited; Property Benefits

Private investment is increasing in the economy, but a lot of it is still flowing into real estate, especially in Beijing where the government dominates investment.


Recently, the Municipal Bureau of Statistics, National Bureau of Investigation Corps Beijing, Beijing released the investigation of private investment.

In 2013, private investment was 241.95 billion yuan, up 15.9 percent over the previous year, the growth rate increased 11 percentage points over the previous year; this accounted for 34.4 percent of total investment, up 2.1 percentage points over the previous year. In the first quarter of this year, private investment was 38.64 billion yuan, an increase of 35.5%, higher than the growth rate of 30 percent for total investment, has become a major highlight of the city's economic development.

2013, private investment as a share of the city's total investment was 30 percent, over the same period the national private investment share of total national fixed asset investment was 63%, a large gap, which is mainly due to the structural characteristics of the economy long-term accumulation formation.

Nearly half of private investment in the country focused on the secondary industry, and tertiary industry accounted for more than 85% of Beijing total investment because private investment in secondary industries is limited. Meanwhile, the Beijing economy has headquarters economy, the knowledge economy, the distinctive characteristics of the green economy, the headquarters of investment, technology investment, relatively large proportion of environmental investment, and investment in these areas to a large extent by the government, the central state-owned enterprises and municipal dominant.

In terms of industries, in 2013, the ratio of the city's private investment in real estate development to non-real estate development was 73:27. In the first quarter of 2014, the ratio was 69.1:30.9, the proportion of real estate development decreased, but remained at nearly 70%.

Non-real estate sector is mainly concentrated in the manufacturing and information services, accounting, respectively, 8% and 4.5%. Proportion of private investment in some industries than 1%, of which electricity, heat, gas and water production, resident services, education, health private investment accounted for as low as 0.2%.

Currently, Beijing private investment funds in place to self-financing project-based. First quarter, excluding private investment in real estate development projects this year, the actual funds 13.93 billion yuan, an increase of 34.3% over the previous year. Which corporate self-financing 9.26 billion yuan, an increase of 15.8%, accounting for 66.4% of the total funds available; whereas the use of fiscal funds of 7.5 billion yuan, up by 5.5 times, the proportion was 5.4%; domestic loans 2.93 billion yuan, an increase of 3.2 times, accounting for 21.1%.

Overall, Beijing channels for private investment is still relatively simple, nearly 90% of private investment concentrated in real estate, manufacturing and information services.

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