MNI: China To Provide More Private Sector Incentives

By Wanxia Lin

     BEIJING (MNI) - China's top planning body said on Wednesday it providing

more incentives for private companies to invest and obtain finance, in the

latest effort by the government to revive a stalling economy.

     The National Development and Reform Commission has a list of 1,222 projects

valued at over CNY2.5 trillion for which it is seeking private sector

participation as part of the policy initiative, spokeswoman Meng Wei told a

press conference in Beijing.

     Some companies have signed contracts as a result, while others have

expressed interest, she said, adding that the government hopes to channel more

private capital into transportation, energy, the environment and social welfare.

     Private investment gained 8.7% y/y in the first three quarters of this

year, 2.7 percentage point higher than in the same period last year, she said.

     The Commission will also ease some "unreasonable" rules that have hindered

private investment, said Meng.

     In addition, local governments have been encouraged to set up risk-sharing

schemes to help private firms obtain loans, she said.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI London Bureau; +44208-865-3829; email: Jason.Webb@marketnews.com

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