In 2016, the slowdown of private investment was rather serious. Anbound Think Tank proposes to encourage private capital into a consortium, vigorously developing the consortium economy; yet it would be difficult to see results in short period of time. In this regard, the Yunnan Baiyao Group recently introduced capital increase to attract New Huadu Group; the ownership structure will be changed from 100% hold by the State-owned Assets Supervision and Administration Commission (SASAC) of the Yunnan Province to 50% by SASAC of Yunnan Province and another 50% by New Huadu Group, and we can learn from this example. The local government has shown great sincerity and integrity that protects the interests of investors. We believe that if all local governments show sincerity and integrity as well, stimulating private investment will no longer be a problem.
