The National Development and Reform Commission, China’s top economic planning agency, is looking at setting up a 100 billion yuan (US$16.2 billion) transport investment fund, the Economic Information Daily reported Thursday, citing sources.
The government-led fund may invite private capital, aiming to invest mainly in projects of transport infrastructure such as airports, highways, ports and intercity rail links, the paper said.
China’s investment in transport is expected to reach 26 trillion yuan by 2020. But a huge funding shortfall is anticipated for the upcoming projects.
Government investments in the sector are expected to yield meager returns, the report said, noting that the returns wouldn’t be greater than the yields on same-period bonds.
The transport investment fund’s exit channels will include initial public offerings of the ventures that are invested in, stake transfers or share repurchase arrangements, according to the report.
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