Open up markets for private capital

The State Council vowed to support economic structural adjustment with more financial resources and encouraged private capital to invest, but it takes time for these initiatives to bear fruit, said an article in China Business News (excerpts below).

The active involvement of private capital will inject new vitality into the financial sector and real economy.

Opening up the market to private capital is a trend worldwide.

The problem is not if it should be done, but how to do it.

The government should select qualified private capital according to certain standards. The financial markets in developed regions should be opened to private capital first to explore the right model of reform.

The government should also create a fair market environment for private and State-owned financial agencies.