Rani Jarkas: China encourages private investments

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.

Li also reassured the interests and legitimate rights of investors should be protected. In particular, innovation in Public-Private-Partnership financing mode should be promoted.

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

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王雷(Rani Jarkas):中国鼓励民间投资繁荣发展

作为推动中国经济增长的重要力量,民营固定资产投资占到全国总投资的60%。然而,2016年上半年民间投资增速创历史新低,从去年同期的11.4%下滑到2.8%。

李克强总理在上周各省政府和各部委负责人会议上强调,应促进民间投资“十三五”规划(2016到2020年)内的关键项目上发挥作用,例如教育医疗养老和其他服务业,以及基础建设

李克强同时强调投资者的利益和合法权益应受到保护,另外应公私合作融资模式创新。

民间投资增速的持续下滑会严重影响国家维持经济6.5%到7%的目标增速的努力,影响未来经济结构的优化 。

赛德思投资董事长王雷(Rani Jarkas)在亚洲有多年的金融投资经验。他表示:“中国政府对小微民营企业的大力财政支持将带来一系列的重大影响,包括刺激消费和创造就业。”

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