Fixed asset investment in China rose 3.9% year on year during the first five months of this year, slowing from a 10.1 % rise in 2015.

The researchers at ANBOUND Consulting are of the view that there are major structural problems behind the sluggish private investment.

The promotion of private investment requires systematic planning, in addition to streamlining administration and expanding financial channels for the private enterprises, China should also give the local governments wiggle room for 'trial and error'.

The most important task for now is to expand and encourage more social capitals to venture into different market sectors, encourage inter-competition and strengthen the efforts to promote market-based reform and the reform of SOEs.