The hottest economy is facing downward pressure, a

The economy is facing downward pressure. Private infrastructure investment is "increasing against the trend"

the economy is facing downward pressure. Private infrastructure investment is "increasing against the trend"

China Construction machinery information

in the current macro situation where the economy is facing downward pressure and the growth rate of national fixed asset investment is declining, private investment has acted as the "backbone" of social investment, especially private infrastructure investment has begun to grow rapidly, Its important role in the growth of national investment and stabilizing economic growth has begun to appear. This has become a highlight of China's current economic growth

according to the macro data released by the National Bureau of statistics in mid April, private investment in the first quarter of 2015 was 5034.9 billion yuan, an increase of 13.6%, an increase of 0.2 percentage points over the same period last year, accounting for 65% of all investment. It is obvious that private investment has become an important pillar of all investment

among private investment, "private infrastructure investment increased by 32.8% year-on-year in the first quarter of this year (33.8% year-on-year in March), significantly higher than the growth rate of 22.8% of total infrastructure investment and 19.4% of public sector investment". CICC pointed out in a research report released a few days ago. Industry experts believe that the steady growth of private infrastructure investment will play a more active role in steady growth, structural adjustment and economic transformation and upgrading

according to the analysis of the CICC report, private infrastructure investment accounted for 22% of the total infrastructure investment in 2012, rising to 26% in 2014. It is expected to continue to accelerate this year, and this proportion is expected to be close to 30%

in the first quarter of this year, the income of state-owned land transfer fees fell by 36.1% year-on-year, while the off balance sheet financing in the total amount of social financing shrank significantly, which means that the growth rate of the sources of funds available for infrastructure investment in the public sector has downward pressure. However, the growth rate of infrastructure investment in the first quarter was 22.8%, up 2.5 percentage points from 2014. The report estimates that the contribution rate of private capital is about 35%, indicating that private capital plays an indispensable role in driving the growth rate of infrastructure investment

data shows that private capital has a high enthusiasm for participating in infrastructure investment, with a year-on-year increase of more than 30%. Using the private investment data of the National Bureau of statistics, the private fixed asset investment in transportation, warehousing and postal services, water conservancy, environment and public facilities management, and the production and supply of electricity, heat, gas and water are collectively defined as private infrastructure investment. According to CICC calculation, private infrastructure investment in the first quarter of this year increased by 32.8% year-on-year, 10 and 13.4 percentage points higher than the growth rate of total infrastructure investment and public sector investment respectively

under the current situation of economic downturn and declining investment in fixed assets, why do private capital begin to be keen on infrastructure investment

according to the analysis of industry institutions, at present, the relevant national policies have given strong support and targeted easing, which has reduced the investment cost of private infrastructure without the need to replace the whole machine. Infrastructure investment has the characteristics of positive externality and long investment period, so the government provides necessary financial subsidies for private capital to participate in infrastructure investment, which is also part of the active fiscal policy. And simplify the planning and site selection, the use of slightly different process land by various manufacturers, and the project approval procedures, so as to reduce the transaction costs of enterprises. More importantly, under the background of difficult and expensive financing in the real economy, policy oriented and development oriented financial institutions provide differentiated credit support for private sector infrastructure investment, with a loan term of up to 30 years. In addition, if they participate in PPP projects, the government and private capital will jointly contribute to alleviate the financial pressure of private capital. At the same time, private capital is also expected to obtain other supporting orders from the government

the insulation layer in the private infrastructure investment system is mostly light porous materials, with low shear strength, which begins to produce attractive returns. The infrastructure projects that private capital enters are not purely public welfare projects, which often have good cash flow returns and stable income. In addition, if the medium - and long-term goal of the PPP project company is to achieve the listing and securitization of infrastructure assets, both public sector and private capital will benefit from the appreciation or even doubling of the initial investment

at present, the profit growth rate of real estate and manufacturing industry is declining, and private capital is seeking new investment channels. In 2014, the profit of industrial enterprises increased by 3.3% year-on-year, and fell to -4.2% from January to February this year; The adjustment of the real estate market since 2014 has led to a decline in the profit margin of the real estate industry. Compared with traditional manufacturing and real estate industries, the return on investment in infrastructure is relatively higher, and there is targeted support from national policies, so it attracts investment

CICC believes that the market should pay attention to the positive situation of private capital participation in infrastructure investment, which will become an effective supplement to government led infrastructure investment and help improve operational efficiency. current "Polyurethane is a good thing. The high growth rate of 20% infrastructure investment can be sustained. This is because monetary and fiscal policies will strengthen the regulation of countercyclical policies, and the growth rate of infrastructure investment in the public sector may remain stable at a high level. The government is more determined to encourage private capital to participate in infrastructure investment. Targeted loose preferential policies, stable cash flow returns and the adjustment of the real estate industry will attract more private capital Private infrastructure investment will become an effective supplement to government investment