Business / Markets

Infrastructure seen as good investment

By Cai Xiao (chinadaily.com.cn) Updated: 2014-03-26 17:08

Private funds can seek opportunities in debt restructuring and transform short-term debt to long-term debt, said Zheng Xinli, deputy director of the China Center for International Economic Exchanges, on Tuesday.

Zheng said at a forum that there is great potential for investment in infrastructure construction in second- and third-tier cities, public services, environmental protection, modern agriculture and other areas.

According to Zheng, while the debt of local governments has totaled about 18 trillion yuan ($2.9 trillion), the risk is not very high. The central government can clear and normalize the debt of those vehicles, Zheng said, and it will not increase. Local governments can see returns on investment because many of the loans were used in projects related to livelihoods and infrastructure construction.

Because the local governments have abundant resources and their financial capabilities will be stronger, they will be able to pay the debt in the future, Zheng said.

Infrastructure seen as good investment Infrastructure seen as good investment
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