As a vital force to China’s economy, private fixed-asset investment accounts for more than 60 percent of the country’s total investment. However, the first half of 2016 witnessed a record low growth momentum of investment by private enterprises, with growth sliding to 2.8 percent from 11.4% last year.
Premier Li Keqiang addressed to senior officials of some provinces and State Council departments last week, indicating that private and semi-public businesses should be encouraged to invest in the key projects to be launched during China’s 13th Five-Year Plan period (2016-2020), such as education, medical care, elderly care and other service sectors, as well as to infrastructure.
A continued slump in private investment growth could spoil the country’s efforts to maintain economic growth within the targeted range — 6.5 to 7 percent for the year — and to optimize the economic structure in coming years.
Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, said, “Chinese government’s stronger financial support to small and micro private enterprises will have a wide range of influences, including promoting consumption and creating jobs.”
Rani Jarkas, the Chairman of Cedrus Investments.
Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas