The State Council Encourages Private Capital To Participate In Building Policy Houses.

According to the 13 announcement of the State Council on China's Government Network on the healthy development of private investment and encouraging and guiding the healthy development of private investment, the government of China News Agency encourages and guides private capital to enter industries and areas where laws and regulations do not explicitly prohibit access.

It is said that government investment is mainly used in the economic and social fields related to national security and the inefficient allocation of resources by the market.

Private capital access should be encouraged and supported for infrastructure, municipal engineering and other public services that can be marketed.

There are 36 opinions.

The fields to encourage and guide the entry of private capital include basic industries and infrastructure, municipal public utilities and policy oriented housing construction, social undertakings, financial services, business circulation, defense science and technology industry, and participation in the reform of state-owned enterprises.

In the field of basic industries and infrastructure, private capital should be encouraged to participate in pportation, water conservancy projects, electric power construction, oil and natural gas construction, telecommunications construction, land consolidation and mineral resources exploration and development.

We should encourage private capital to invest in the construction of roads, waterways, port terminals, civil airports, general aviation facilities and so on by means of sole proprietorship, holding and share participation.

Support private capital to participate in the construction of hydropower stations and thermal power stations in the form of sole proprietorship, holding or shareholding, and to participate in the construction of nuclear power stations.

We should encourage private capital to enter the basic telecom operation market by way of equity participation.

In the field of municipal construction, private capital should be encouraged to take an active part in the reorganization and restructuring of municipal public enterprises and institutions. The municipal public utilities projects with proper conditions can adopt market-oriented operation mode and pfer property rights or management rights to private capital.

Opinions also encourage private capital to participate in the construction of policy oriented housing.

In the financial field, private capital is encouraged to initiate or participate in the establishment of financial institutions such as village banks, loan companies, and rural mutual cooperatives, so as to relax the restrictions on the minimum proportion of capital contributions to legal persons in rural banks or community banks.

The opinion said that we should clean up and revise the regulations and policies that are not conducive to the development of private investment.

Market access standards and preferential support policies should be open and pparent. They should be treated equally for all kinds of investment entities, and no additional conditions should be set up for private capital.

In 2005, the State Council issued a number of opinions on encouraging and supporting the development of the private sector and other non-public sectors of the economy. It has allowed non public capital to enter industries and areas not regulated by laws and regulations.

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