News & Reports News Year 2012 May , 2012 New guidelines for private investors

New guidelines for private investors

China is to issue specific guidelines on encouraging private investment in more industries after opening the way for private capital to flow into the railway and health sectors, an economic official said yesterday.

Drafting of detailed rules for private investment in the heavily state-controlled and monopolized electricity, oil and natural gas sectors is under way, said the official with the National Development and Reform Commission, the country's top economic planner.

Government departments responsible for housing and construction, water resources, securities market and state-owned assets are also writing rules aimed at boosting private investment in those sectors, the unnamed official said.

The commission is also to release a series of rules this month or in June regarding better monitoring and analysis of private investment and improving engineering consulting services for private investment, he said.

The moves follow China's transport, railway and health ministries, who had issued guidelines from last month allowing private capital to develop those sectors.

The State Council, or China's Cabinet, in February said that encouraging private investment in previously state-controlled sectors would be a priority.

The government published policies to support private capital in 2005 and in 2010, but progress has been slow in state-controlled areas such as finance and energy.