As China is facing increased pressure to maintain its economic growth, the decline in private investment which accounts for over 60% of the fixed asset investment is indeed a headache for the Chinese government.

The research team at ANBOUND Consulting suggests that the key cause of the decline in private investment is a dual reduction, namely the reduction in the market environment and the systemic reduction of the financing environment.

The research team at ANBOUND Consulting has been advocating the use of "economic consortium" as a measure to stimulate investment and encourage the deposits of 50 trillion yuan at the banks to be invested.

Regrettably, more than a year has lapsed, this proposal has yet to be adopted, let alone being put in action.

Actually, it is not necessary for the local governments to await the approvals from the central government, in fact, the central government is eager to see innovations in the local governments.

The qualified local governments should move ahead with the development of “economic consortium”.