Investment, consumption and exports are three driving forces to stimulate economic growth. In the first half of this year, the contribution of investment to GDP reached 56.1% in Yichang. Along with series of polices, private investment plays the leading role, accounting for 70% of Yichang total investment, which contributes to a higher growth of investment in fixed asset than the national average.

　　One

　　From January to June, private investment reached 82.74 billion RMB, up 37.5% year-on-year, 14% higher than the average, accounting for 73.7% of the total investment, up 7.4% year-on-year.

　　With the settlement of Nanbo Flat Panel Display, Yichang Automobile Industrial Park and a number of projects in Yichang, the role of private investment strengthened and private investment broadened the field of investment in Yichang.

　　In the first half of this year, Yichang’s fixed investment reached 118.34 billion RMB, accounting for 10% and ranking the second in Hubei Province, with year-on-year growth of 0.2%. The growing rate remained stable with an increase of 23.5%, higher than the average growth rate in Hubei Province. Meanwhile, entity investment speeds up and the investment structure optimizes constantly.

　　In the first half of this year, the second industry investment reached 60.54 billion RMB, with year-on-year growth of 28.6%, an increase of 14.3% compared to the same period last year, 10.9% higher than the investment growing rate in the tertiary industry.

　　Two

　　Without good projects, investment tends to be pointless. Noah Optoelectronics spent 3.8 billion RMB on building LED Industrial Park, and Jixing Chemical Industry Group invests 5 billion RMB to start the calcium salt project... Since this year, a number of companies in Yichang have invested many good projects, showing their investment enthusiasm.

　　Since April, China has successively introduced many policies to stimulate investment: Shantytowns Reconstruction, Increasing Railway Investment, Encouraging Private Investment, Supporting the Steady Growth of Foreign Trade, Encouraging the Development of Producer Services, Accelerating the Construction of Water Conservancy Projects, Guiding Investment in Emerging Industries, and Lowering the Deposit Reserve Rate.

　　To follow the pace of state policies, Yichang has established the Shantytowns Reconstruction Office at the right moment. In the megacity construction, Yichang adheres to constructing new district and reconstructing old district simultaneously. On July 9th, the Municipal Government signed an investment agreement with Shanghai Junyao Group to bring in eight billion RMB for Shantytowns Reconstruction in Huancheng south road area.

　　At the end of August, Historic District Plan of Huancheng South Road Area officially confirmed to reproduce eight Yichang historical sites: Erhya Platform, Dongshan Picture, Patio Courtyard, Ink Pool Academy, Clock Tower, Ink Pool Lane, Yiling Stage, Tianguan Memorial Archway.

　　Three

　　In fact, facing with common problems of the national economic downturn, Yichang has made the preparation.

　　Many small and micro enterprises are being faced with difficulties in financing. Some private capital unite together to provide financing services for promising enterprises. As of the end of July, 2014, the private capital has been involved in 42 small loan companies, with a total registered capital of 4.7 billion RMB offering 2740 loans of 3.7 billion RMB. Meanwhile, 30 financing guarantee companies have been established, with the registered capital of 5.76 billion RMB and total assets of 7.22 billion RMB.

　　Highlight: Yichang Deepens Reform and Transformation Development

　　The total newly increased guarantee reached 3.15 billion RMB, with 677 newly increased households, and the capital in insurance reached 14.06 billion RMB, with 2429 households in insurance.

　　In addition, some private capital participate in the formation or increase in capital and share of 13 local corporate financial institutions to further support small and micro enterprises. At the end of July, the loan balance of Yichang Agriculture and Commerce Bank reached 23.292 billion RMB, 2.857 billion RMB more than that of the beginning of the year and an increase of 13.98%.

　　The private investment prefers the projects with high technology, good market prospects and environmental protection. Leaders of Municipal Party Committee and Municipal Government investigate and survey the sites, creating favorable conditions for KYLand Science and Technology and HKC Electronics and other strategic new industries.

　　On August 20th, the Municipal Government discussed the Opinions on Further Accelerating the Development of Private Economy and decided to broaden the field of private capital investment. Except for the banned industries and fields, private capital can be involved in any other industries and fields.

　　Then, Yichang issued 56 key projects covering transportation, energy, urban infrastructure, with a total investment of 65.6 billion RMB. This is the first time that Yichang has attracted social capital into urban infrastructure that used to be led by government funding. The policy has attracted wide attention for allowing private capital to participate in the construction and operation in the ways of joint ventures, wholly-owned, equity participation, franchising, PPP (government and social capital cooperation) .

　　The private investment in Yichang has entered into a golden period, with all the advantageous factors available. (Reporter: Zhao Wei)