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West goes all out to lure new investment
2000-03-12
China Daily
The central government's support of the development of western regions creates new opportunities for local listed companies, analysts said.
It holds a promise of more investment for the areas and favourable investment conditions.
Within the West, huge amounts of natural resources exist. Support heightens their development and investment value.
Infrastructural construction weighs heavily in the campaign. Outdated infrastructures have pulled down the local economy and have added to operations costs of companies from the western areas that want to get listed.
But potential is high.
"With the pooling of capital by the central government in the sector, private investment will flow in," said Gao Daode, a senior researcher at the Haitong Securities Company.
It will also produce considerable returns to investors who will have access to fees charged when projects are finished, especially in the areas of water conservation and public transportation.
Coal, natural gas and rare metals in West China are undeveloped, as are hydropower resources, creating opportunities for further development.
Government support will increase funding access for ecotourism and Chinese medicine businesses, Gao said.
Other promising sectors include agriculture, the satellite and space industries, which are listed on stock exchanges.
Development of the West may lead to more opportunities, but there are problems that must be solved to ensure the smooth entry of foreign funds, Gao said.
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