China to further expand infrastructure investment

CHINA issued guidelines on Wednesday to expand infrastructure investment by freeing up capital locked in existing projects, using tools such as real estate investment trusts (Reits), as part of a strategy to revive its Covid-hit economy.

In a statement issued on its website, the State Council, China’s Cabinet, also encouraged partnerships between public and private capital to jointly develop infrastructure projects.

It also committed to speeding up the listing of infrastructure projects via the public Reits market, which could suit projects like tollways and sewage plants.

China has been boosting infrastructure investment to stabilise an economy ravaged by coronovirus outbreaks that have curbed consumption and hit exports. REUTERS