Embrace A Feast For Social Capital.docVIP

Embrace A Feast For Social Capital 　　On Nov. 26， the State Council of China rolled out the Guiding Opinions on Innovating Investment and Financing Regimes in Major Sectors and Encouraging Social Investment. （hereinafter referred to as “Opinions”） 　　Pursuant to the Opinions， social capital will be allowed to enter the sectors of ecological and environmental protection， agricultural water conservancy， municipal infrastructure， railwayhighway-airplane construction， energy facilities， information and civilian space， as well as social undertakings. 　　The Opinions came as part of efforts made by China’s decision makers to guide the social capital into the market in the face of huge changes that are taking place due to Chinese economic structure adjustment. 　　 A favorable environment for investment 　　“The roll-out and implementation of the Opinions will help further break industries monopolies， reduce market barrier， establish fair， open and transparent market rules， create an investment environment featured with equal rights， equal opportunities and equal rules， stimulate main bodies’ activities and unleash their potential， stabilize effective investment， and strengthen constructions in weak links，” says Li Pumin， secre-tary-general to the National Development and Reform Commission （NDRC）. 　　It is a clever move for decision makers to balance the relationship between economic development and social stability by reforming investment and financing regimes， breaking industrial monopolies and introducing social capital into the market. 　　On May 21， 2014， the NDRC released the list of China’s first 80 demonstration projects that are open to social capital， including projects of the coal railway transportation route from Western Inner Mongolia to central China， Beijing Metro Line 16， and the fourth natural gas pipeline from Shaanxi Province to Beijing City. 　　The move is to encourage and attract social capital， especially the private capital， to take parts in constru