China's top economic planner has approved construction of more than 30 infrastructure projects with a total investment of over 850 billion yuan this year, according to a report by Securities Daily on Thursday July 4.
Most of the projects that the National Development and Reform Commission (NDRC) have authorised are for rail transit, airport and coal mining.
Construction of transport and fledgling infrastructure projects is likely to speed up this year, as economic planners attempt to drive the flow of talents, logistics and information, Tang Chuan, investment director of the 360 Financial PPP Research Center, told the paper.
Fledgling infrastructure projects such as 5G, artificial intelligence, industrial internet and the Internet of Things are expected to see construction ramp up in the second half of the year, in the wake of the issuance of 5G licences for commercial use in June.
China in June issued a document which encourages local governments and financial institutions to use special bonds and other market-based financing methods to support key areas and major projects, which is expected to help boost infrastructure investment and support economic growth.
Tang believes that the second half of the year will see greater investment in infrastructure and a larger number of construction starts, in anticipation of a ramp-up in transport and fledgling sectors as well as a rush for a slew of revival and reform programs.