China will implement a raft of policy measures to promote the transformation and upgrading of villages inside megacities, which will motivate the participation of private investment, according to decisions made at a State Council executive meeting chaired by Chinese Premier Li Qiang.
Recently, several Chinese government departments issued a series of policies, including policies to stimulate consumption of vehicles and home appliances, aiming to boost the willingness and capacity of private investment, which will be good for expanding domestic demand and stabilizing market players’ expectations.
Rebuilding villages inside megacities will improve people’s well-being and promote high-quality urban development. Moreover, the investment in rebuilding villages this year is expected to exceed RMB 1 trillion ($0.14 trillion), and maybe even reach RMB 2 trillion ($0.28 trillion), which will play a key role in boosting domestic demand, will exert a positive impact on the real estate industry, and will stimulate the demand for steel.
Related data showed that during the years 2020, 2021 and 2022, the investment in rebuilding villages inside megacities amounted to RMB 1.24 trillion ($0.17 trillion), RMB 1.36 trillion ($0.19 trillion) and RMB 655.9 billion ($91.9 billion), respectively.