With China's economic slowdown, most of the industries are experiencing decline in their profits and there is a shortage of investment objectives, Chinese enterprises' cash level rises to historic high.

Analysts believe the reasons that Chinese enterprises’ stocks are holding cash instead of using it would be partially caused by uncertainty in China’s domestic policy on private investment.

The research team at ANBOUND Consulting suggests that if the private investors see profitable sectors, and the policies and the laws are able to protect the rights of investment, there is no need for over-supervision; private investments will still pour into these new sectors.

In extreme economic environment, extraordinary measures should be taken to stimulate private investments, among these measures would be greatly opening-up the market and reducing investment restrictions, as well as improving market environment and encouraging private capital to utilize the "economic consortium" model to increase investments.

If the private investments fail to improve, it would be hard for the economy to improve.