Chen Wenjun:

Thank you, Mr. Liu. The floor is now open for questions. Please identify the news outlet you work for before asking your question. 

CCTV:

Since the beginning of this year, we've noticed an increase in projects starting nationwide. What measures have the NDRC taken to drive investment through government funding? What progress has been made on the allocation and utilization of budgetary investment of central government and special bonds issued by local governments? And what measures will the NDRC take to boost private investment? Thank you.

Liu Sushe:

Thank you, I will answer these questions. The Central Economic Work Conference has made important arrangements to increase effective investment, and the government work report also called for actively increasing effective investment. The NDRC has earnestly implemented related requirements, worked with relevant parties to promote investment, and made government investment, such as investment within the central budget, special local government bonds and additional government loans issued in 2023, play their role in driving investment, thereby increasing effective investment. In the first quarter, nationwide investment in fixed assets grew 4.5% year on year, 0.3 percentage point higher than the growth in January and February, and 1.5 percentage points higher than the growth last year, exhibiting a steady recovery. Investment in manufacturing and infrastructure exhibited rapid growths of 9.9% and 6.5%, respectively. Private investment grew 0.5%, with the growth rate continuing to recover, accounting for 51.6% of all investment. Specifically, we have taken measures in the following aspects: 

First, moving faster in allocating planned investment within the central budget. The central government arranged for a total of 700 billion yuan ($96.61 billion) in budgetary investment this year. Together with relevant parties, the NDRC has prioritized quality and efficiency, strengthened its backup of projects and enhanced preparatory work and coordinated work to compile investment plans. So far, more than 200 billion yuan of the planned investment within the central budget has been allocated, accounting for more than 30% of the annual total. Next, we will further accelerate the allocation of planned investment, enhance the implementation of investment plans, conscientiously carry out project construction and supervision, and continue to increase the effectiveness of utilized investment within the central budget. 

Second, completing preliminary screening of projects to be funded by special local government bonds. This year's special bonds total 3.9 trillion yuan. Previously, the NDRC has collaborated with the Ministry of Finance (MOF) to expand the investment areas of the special bonds and business sectors eligible for funding. Recently, according to the responsibilities related to special bonds, the NDRC examined investment areas and preliminary work on projects submitted by local governments and completed the preliminary screening of projects to be funded by special bonds. The results have been sent to the MOF and different localities, the MOF is vetting the costs and income balances of projects financing, and preparatory works have been advanced for various projects. Overall, many projects have passed the preliminary screening and have large demands for funding, which means that we are on solid ground to issue and utilize special bonds this year. We will work with relevant parties to finalize the list of projects for preparation, urge local governments to expedite the issuance and utilization of bonds, and promote various projects to achieve solid progress.

Third, we have worked to accelerate the implementation of projects supported by additional treasury bonds allocated in 2023. By February, the NDRC had released all three lists of projects supported by an additional 1 trillion yuan worth of treasury bonds, allocating the funds to 15,000 specific projects. Since March, the commission has established an online allocation mechanism to ensure these projects begin construction at an earlier date. It has also worked with relevant competent authorities to supervise project implementation and regulate all stages, from start to finish. We have completed supervision over the first batch of projects in 12 provinces, with other provinces also exercising self-supervision. Supervision over the second and third batches of projects will be conducted within this year. Tomorrow, the NDRC will hold a teleconference to discuss the implementation and promotion of projects supported by additional treasury bonds allocated in 2023, briefing on project progress and supervision, and making timely rectifications of the problems revealed. Also, the commission will intensify efforts to ensure that local governments assume their primary responsibilities and promote all these projects to start construction before the end of June.

At the same time, we will work to ensure that government investment and policy incentives effectively drive society-wide investment. Various policies will be fully implemented to guide no-government investment. Specifically, we will give full play to an already-launched national information system of cooperation projects between government and private capital, comprehensively implement the specific requirements of the guidelines on compiling the franchising plan and effectively implement a new mechanism for cooperation between government and private capital. More major projects will be promoted publicly to attract private investment. We will also study expanding the scope of trials to allow more banks to participate in combined debt-equity investments, guide banks to continuously increase financing support for privately invested and national major projects, and take a wide range of steps to stimulate investment from nongovernmental sources. Thank you.