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China National Radio:

We have noticed that, in March, private investment reached 5.73 trillion yuan, up 7.7 percent, one percentage point higher than growth in the first two months of this year. Does the overall momentum of the private investment suggest a rebound now? Besides, private investment reflects the real economy. So, is the real economy getting better, too? Thank you.

Mao Shengyong:

Thanks for your questions. One is about the trend of the private investment and the other refers to the growth of the real economy.

Private investment in the first quarter of the year did indeed grow one percentage point, and was faster than the growth in the first two months of this year, reaching 7.7 percent. The manufacturing investment in the first quarter of the year grew 5.8 percent, which represented a 1.5 percentage-point gain compared to the first two months of the year. We pay close attention to private investment and investment in the manufacturing sector, because the latter mainly involves private enterprises and thus is a more accurate reflection of the market's growth momentum and dynamics. Since last September, both manufacturing investment and private investment have been rebounding.

Last year, private investment was at a low level with a rapid decrease. The State Council undertook studies, issued documents and dispatched supervisory groups to local governments to check the reasons for this. Since then, private investment has been given high attention by local governments. It has been on the rise from the last September to the present.

Viewed from the current circumstances, the rebound has a certain basis, and here are the reasons:

First, the supply-demand relationship has improved and the market has become more vigorous, creating a better atmosphere for the investment and growth of private enterprises.

Second, current policy support in various respects, including reforms for "streamlining administration and supervision and service efficiency", market access and accelerating PPP-based projects, have allowed more space for private enterprises, which will help the growth of the private investment. Thus, private investment can still maintain its rebound in the next phase.

As for the real economy you mentioned, revival of the real economy is one of this year's four key tasks in deepening supply-side structural reform. The real economy includes the manufacturing sector and the service sector. Given the current overall economic growth trend, the real economy has shown signs of rebound. Next, with more policy supports, more resources and funds will be pulled away from the virtual economy to benefit the real one. The real economy is well positioned to achieve better development. Thank you.

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