Last updated at: (Beijing Time) Thursday, October 30, 2003
Private investment accelerates in China: expert
Investment from the private sector has accelerated annually since 1999 with expanded investing fields,said Bao Yujun, president of the China Private Economy Association.
Investment from the private sector has accelerated annually since 1999 with expanded investing fields, said Bao Yujun, president of the China Private Economy Association.
Addressing the 2003 International Financial Forum Thursday, Bao said government support and the increasingly marketed national economy made private enterprise the new star in China's capital market.
Statistics show that the year-on-year growth rate of private investment from 1999 to 2002 was 7.53 percent, 11.44 percent, 12.59 percent and 13.8 percent respectively.
Private capital has covered 16 major industries so far, including infrastructure, education, culture, finance, insurance, foreign trade and other fields beside the traditional manufacturing sector and the service industry, Bao said.
The high technology industry, the medical sector and education also became new favorite destinations for private capital.
According to statistics, the number of private science and technology enterprises in Shanghai reached over 16,000 in 2002, accounting for 98 percent of the total science and technology enterprises there. The number of private schools in China had reached 56,274 and enrolled 5 percent of the nation's total students by the end of 2001.
Bao also pointed out that China's private capital faced challenges of relatively low quality, and threats from foreign capital, and lacked governmental function-transfer.