KPMG | GPE – July 16, 2017:
Report originally published by KPMG in 2009: The development of infrastructure within China has consistently been a key focus for the government in the economic development initiatives encapsulated in regular Five-Year Plans, which are now into their eleventh cycle (2006 to 2010).
With the announcement of an RMB 4 trillion stimulus package in November 2008, the scale and importance of infrastructure for the development of China’s economy has been further underlined and increased the attention of domestic and foreign investors, as well as operators in this area.
The foundations upon which new infrastructure is being developed are supporting continued rapid economic growth with railway, roads, airports, water, energy and rural projects seeing significant investment. The continued expansion of the high speed rail and city-wide metro networks are prime examples of China’s ambitions to further enhance its transport systems to benefit the wider economy.
For infrastructure investors, contractors, operators and equipment companies, China has for many years been and continues to represent a land of great opportunity, but also of significant challenges. Looking forward, China’s
impressive infrastructure building targets to 2020 are set to bring a major flow of infrastructure projects on stream. In order to benefit from infrastructure’s stable cashflows and returns, domestic insurance, pension and other funds are increasingly being attracted towards the infrastructure sector.
Financing for infrastructure investment is likely to be a major consideration. The continued development of China’s financial system and growing awareness of investors may see changes in the way infrastructure projects are financed and owned, and greater use of different project financing options.
This report aims to provide a snapshot view of some of the key infrastructure sectors in China together with brief commentary on implications for investors, operators and other market participants. KPMG also has a range of publications on specific infrastructure sectors which provide further analysis and commentary.
To read full report – please click here.
