Accelerating Major Projects and Enhancing Private Investment Confidence

Recently, various regions have been rapidly advancing the construction of significant engineering projects. Despite facing a complex and challenging external environment, investment remains one of the key drivers of economic growth, playing a crucial role in expanding domestic demand and stabilizing economic performance. From January to April this year, fixed asset investment increased by 4.0% year-on-year. Among these, private investment, an important indicator of economic vitality and resilience, is also showing signs of steady recovery.

The National Development and Reform Commission (NDRC) has announced plans to finalize the list of this year’s major construction projects by the end of June. There is a push to enhance mechanisms for private enterprises to participate in national major project construction. This year, approximately 3 trillion yuan worth of quality projects will be launched in key sectors such as transportation, energy, water conservancy, new infrastructure, and urban infrastructure. Local governments are also actively releasing lists to support private capital’s participation in these major projects. Analysts predict that the growth rate of investment is likely to accelerate further in the second quarter.

Wang Qing, Chief Macro Analyst at Dongfang Jincheng, noted that infrastructure investment has remained high since the beginning of the year, which is essential for stabilizing the macro economy given the increasing uncertainties in the external economic environment. In the near future, the acceleration of infrastructure investment will be a key focus for promoting growth.

Progress on Major Projects

On May 27, the 400 MW offshore photovoltaic project in Yantai Zhuhai, developed by China General Nuclear Power Group, achieved full-capacity grid connection. This project is significant as it is the first fixed pile offshore photovoltaic project in China, successfully implementing a series of innovative products, including self-developed bifacial double-glass photovoltaic modules. The project is expected to generate an average annual electricity output of 694 million kWh, equivalent to reducing coal consumption by approximately 208,700 tons and cutting carbon dioxide emissions by about 535,800 tons, which is comparable to planting 1,562 hectares of trees.

On the same day, the Mianshuidao Wind Power Project in Pengze, Jiangxi, also achieved full-capacity grid connection, marking the official operation of the first “zero-carbon island” in the Yangtze River Basin that provides large-scale renewable energy supply. Over the course of a year and a half, thousands of builders installed 18 wind turbines and associated energy storage systems, establishing a self-sufficient clean energy supply system.

Significance of Major Projects for Investment Stability

According to the latest data from the National Bureau of Statistics, fixed asset investment increased by 4.0% year-on-year from January to April. Infrastructure investment has shown a significant pull effect, increasing by 5.8%, which is 1.8 percentage points higher than the overall investment growth rate. Projects with a total planned investment of over 100 million yuan also saw a year-on-year increase of 6.7%, further contributing to overall investment growth.

Accelerating the construction of major strategic projects is a crucial strategy for stabilizing investment this year. In 2024, over 700 billion yuan will be arranged for long-term special bonds, with nearly 500 billion yuan already set for 2025, supporting a series of major project constructions along the Yangtze River, including transportation infrastructure, urban underground pipeline networks, and more. NDRC spokesperson Li Chao emphasized that as numerous major projects commence operations, they will play a vital role in stabilizing economic performance, optimizing industrial structure, ensuring national security, and enhancing the well-being of the populace.

Encouraging Private Investment in Major Projects

This year, private project investment has experienced steady growth, with a 0.2% year-on-year increase from January to April. Specifically, private investment in sectors excluding real estate saw a growth of 5.8%. In terms of industry, private investment in manufacturing grew by 9.0%, while infrastructure investment rose by 9.6%, exceeding overall industry growth rates.

Recent measures to support private investment have intensified, with various regions releasing lists of key private investment projects focusing on industrial development, major engineering projects, and infrastructure improvements. From January to April, the bid success rate for private enterprises increased by 5 percentage points, with projects under 100 million yuan seeing private enterprises account for over 80% of the total bidding volume.

Furthermore, the NDRC is expediting the establishment of a long-term mechanism for private enterprises to participate in national major projects, having already introduced significant projects in nuclear power and railways. Some nuclear power projects have seen private capital participation reach 20%, with private enterprise funding in industrial equipment renewal and recycling exceeding 80%.

This year, the government plans to roll out approximately 3 trillion yuan in quality projects across key sectors such as transportation, energy, water conservancy, and new infrastructure. The NDRC will actively support private enterprises in emerging and future industries, encouraging them to participate in national major technological innovation tasks and utilize national research facilities.

Local governments are also promoting investment projects for private capital. For instance, Shaanxi Province plans to introduce 60 projects to private investors, aiming to attract 22.7 billion yuan in private capital. Hubei Province has released a list of 229 projects with a target of 91.67 billion yuan in private investment across various sectors.

In Shanghai, the government is establishing a database for key private investment projects, encouraging investments in advanced industrial projects aligned with the national industrial structure adjustment guidelines.

Overall, there is a growing trend of private investment geared towards new industries and future sectors, driven by favorable policies and support mechanisms.