2016-07-05

State Council Sends Teams to Boost Private Investment

On May 4 I posted: Depression: State Council Investigates Drop in Private Investment

The private economy is slowing and the recent spike in investment is coming from SOEs and local governments. The State Council has noticed and has sent out investigation teams (dubbed a "rare signal" by the media) to find why private investment has slumped.
Now it's July and they're sending out more teams.

SCMP: Beijing to send teams around nation to check on slowing private-sector investment
The State Council will send supervisory teams to regions with huge but sharply slowing amounts of private investment from the middle of this month in the government’s latest effort to revive the economy.
The move came after fact-finding trips and assessments were carried out in May on how policy on private investment was being implemented.

The aim of the latest initiative is to ensure any problems found are corrected, according to a ­notice published on the government’s website yesterday.

...Beijing urged local governments in the notice to remove discrimination against private capital and set up market rules that were “fair, open and transparent”.

The notice required local authorities to report the results of their self-investigation to the central government by August 15, but it did not specify which regions would be involved.

Related: Private Investment on the Verge of Collapse, Chinese Economy Enters Single Digit Era

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