China's economy grew 6.7% in the first half, however, private investment increased by only 2.8 percent year on year in the first six months of 2016, a decrease of 1.1 % compared to the period of January to May this year, an obvious problem in China’s economy.

Not only that growth has slowed down, the private sector accounted for 61.5% of the total fixed-asset investment, a decrease of 3.6% year-on-year.

The research team at ANBOUND Consulting suggests that the decline in private investment shows that the marketization of China’s economy is still insufficient while the state-owned enterprises show that non-market factors still play a significant role in China.

The SOEs reform and government reform should eventually be reflected in the market.

In short, the resource economy should give way to the market economy.