SCIO briefing on promoting high-quality development during 15th Five-Year Plan period

Yicai:

In the first quarter, nationwide fixed-asset investment shifted from decline to growth, with infrastructure investment in particular posting relatively strong gains. What major measures will be introduced in the investment sector going forward? Thank you.

Wang Changlin:

Thank you. The recovery in investment figures is a bright spot in this year's economic performance. As you may know, expanding effective investment is a key measure for stabilizing growth, strengthening growth momentum, improving people's livelihoods and ensuring security. Investment declined last year due to a range of factors. Since the start of this year, regions and departments across the country have worked to implement the decisions and arrangements of the CPC Central Committee and the State Council, halting the investment decline and restoring stability. In the first quarter, fixed-asset investment grew 1.7%, reversing the downward trend. Overall, three key factors have provided strong support.

First, policies to stabilize investment are delivering results. Large-scale equipment upgrades have continued to gain momentum, driving a 13.9% increase in investment in equipment and tool purchases. Policies to encourage private investment have been implemented at a faster pace, supporting private enterprises in participating in key sectors such as transportation, energy and water conservancy. Excluding real estate development, private investment grew 1.3%.

Second, new quality productive forces are unlocking new growth drivers. Regions across the country have developed new quality productive forces based on local conditions, driving rapid growth in investment related to new growth drivers. In the first quarter, investment in high-tech industries grew 7.4%, with high-tech services particularly strong at 12.3%. Investment in professional and technical services rose 29.5%, while information services grew 20.9%.

Third, major projects are being prioritized and front-loaded. The accelerated launch of major projects has been a key factor in halting the investment decline and restoring stability. In the first quarter, investment in projects with a planned total investment of 100 million yuan or more grew 4.5%, with railways, energy and other sectors accelerating, driving infrastructure investment up 8.9%. Investment in air transport and water transport rose 43.3% and 34.1%, respectively.

Going forward, we will work with regions and relevant departments to accelerate the implementation of a package of investment-stabilizing policies, focusing on intensifying efforts and improving efficiency while continuing to leverage the key role of effective investment in optimizing the supply structure.

On the one hand, we will maximize the driving role of government investment and further stimulate private investment. In terms of government investment, efforts will be made to ensure that this year's 755 billion yuan in central budget investment and 1 trillion yuan in ultra-long-term special treasury bonds are basically disbursed by the end of June. The share of local government special bonds allocated to project construction will be further increased, and the release of 800 billion yuan in new policy-based financial instruments will be accelerated in an orderly manner. Central SOEs will be supported in organizing major engineering projects that span regions and river basins with long industrial and supply chains, and central-local cooperation will be actively expanded. Regarding private investment, we will further improve the long-term mechanism for private enterprises to participate in major projects, focusing on high-growth areas such as the digital economy, AI and commercial aerospace. We will introduce a series of policies and reform measures to boost private investment, encourage central SOEs and private enterprises to collaborate on key projects including core technology breakthroughs and accelerate the growth and efficiency of the infrastructure REITs market to continuously stimulate private investment.

On the other hand, we will improve investment efficiency through targeted measures and innovative mechanisms. In terms of investment focus, this year we will launch a series of initiatives to expand effective investment in areas such as AI Plus infrastructure, urban renewal, the national water network and new energy systems, optimizing the supply structure and expanding market demand. In terms of institutional and mechanism innovation, we will roll out "soft construction" work across central government investment projects to establish a long-term mechanism covering project construction, implementation, operation and maintenance. We will also leverage the National Venture Capital Guide Fund for Emerging Industries to channel private capital toward technological innovation and the development of emerging industries. Thank you.