Closer Look: Policies to Promote Private Investment Just Symbolic

A number of policies were unveiled in May and June to promote private investment in sectors dominated by state-owned enterprises. This wave of measures was a response to a July deadline set by the central government this year. Industry experts welcome the long-waited move, but remain cautious about the real impact of hasty regulation.

In May, the Ministry of Railways, China Securities Regulatory Commission and China Banking Regulatory Commission (CBRC) all made public plans to open to private money. In addition, in June the State Tax Administration brought out a 33-item tax reduction plan for private investors.