The Process,Objectives and Patterns of Investment System Reform in China

Investment system reform in China started early with various initiatives and drastic changes. However, for many reasons, a wide gap still exists between the reform and the aims of the market economy. The gap even becomes one of the constraining factors to reforms in other fields. This paper reviews the process of investment system reform in China, followed by an analysis of the outstanding problems, and finally discusses the next-steps of reform, that is, making enterprises the main investment body and developing the capital market as the main financing channel, as well as developing intermediary agencies as the major organizations for investment management. Comprehensive use of economic levers should be the major means of macro-control to make investment activities streamlined.