1、A leading Chinese expert in finance is now suggesting the Chinese governments move to open up numerous sectors of the economy to private investment is a significant advancement in the transformation of this countrys economy.CRIs Wei Tong has more.Seven government-monopolized sectors are being given
2、the green light to absorb private investment.Those sectors include banking, railway construction and servicing, urban planning, energy, telecommunications, education and medical services.The China Banking Regulatory Commission is trying to encourage private companies to buy into banks through privat
3、e stock placements, new share subscriptions, equity transfers, and mergers and acquisitions.Meanwhile, the China Securities Regulatory Commission says its going to support private companies listing on the stock market, both domestically and overseas.Zhao Xijun, a finance expert with Renmin Universit
4、y, says the move is a significant step in Chinas economic transformation.Currently, Chinese economic development comes into a special stage which is characterized by the shift of economic structure, industries upgrading and the transformation of the mode of development. We need to mobilize capitals
5、from various sources to realize these goals. Those who lead the market should be enterprises or private investors rather than government bodies.The Chinese government is making its hardest push in a decade to try to court private investors by welcoming them into a handful of sectors.However, Zhao Xi
6、jun is warning that making these incentive policies a reality is going to be the biggest hurdle.Challenges would be the stumbling block for private investment. They may come from some policies that are incompatible with the political system or market demand. Some investors may not be able to meet th
7、e entry requirements in terms of professionalism, technology, capital volume and other standard when making entry into the monopolized sectors.Zhao Xijun also says the government needs to ensure fair competition between private and public investment when it comes to market access, management and the operation of the state-monopolized industries.For CRI, this is Wei Tong.
