A view of an urban renewal project in Nanning, Guangxi Zhuang autonomous region. XINHUA
China will make full use of fiscal funds and bank credit while leveraging private capital as part of a broader drive to build a sustainable financing system for the country's urban renewal initiative, officials said on Friday.
The directive, part of China's first national urban renewal plan, seeks to diversify funding sources for a massive infrastructure upgrade that market watchers expect will require about 15 trillion yuan ($2.1 trillion) in investment during the 15th Five-Year Plan period (2026-30).
The plan — released by the State Council in late May — outlines quantitative targets, including the renovation of 500,000 dilapidated urban residential units, 115,000 aging residential communities, 1,500 aging industrial districts and factory zones, 4,000 urban villages, and 365,000 kilometers of underground pipelines by 2030.
In this context, China is expected to invest at least 15 trillion yuan in urban renewal projects during the 15th Five-Year Plan period, averaging 3 trillion yuan annually, said a research note by Huachuang Securities.
