At present, private investment in China is declining. On the surface, it is greatly affected by economic downturn factors. However, at a deeper level, under the wave of global technological revolution and industrial transformation, the role and connotation of private investment are undergoing profound structural changes. The old investment model aimed at expanding scale and replicating production capacity is difficult to continue, and the current involution has led to a serious decline in returns. However, the breeding style new investment oriented towards future new scenarios, new formats, and new models is still flourishing and should become the trend and direction of private investment in China during the 15th Five Year Plan period.
From the perspective of characteristics, old investment relies on existing industries and is driven by traditional factors such as land and labor, manifested as an increase in production capacity and fixed assets, with marginal investment returns showing a decreasing trend. While new investment is no longer fixated on physical expansion, but focuses more on the leap of value forms, valuing intangible assets such as knowledge, technology, talent, and data, and paying more attention on potential breakthrough returns in the future. Therefore, to promote high-quality private new investment in China, a systematic thinking approach should be established, focusing on policies, services, funds, and scenarios in a comprehensive manner, and creating a good investment ecosystem through four-dimensional upgrading.
