Expanding effective investment is crucially about "effectiveness". Specifically, investment must first have financial benefits. As capital is a scarce resource, achieving reasonable and optimized allocation is vital. Private investment values returns, while government investment must also consider the actual demand for investment and the fiscal capacity of the government, avoiding indiscriminate expansion and project initiation without regard for actual liabilities and debts. Investment should focus on areas that have reasonable returns on investment. Moreover, it should prioritize economic benefits, directing funds toward sectors with high industry relevance and strong contributions to economic growth, or focusing on key fields where short-term benefits may not be obvious but will yield better economic benefits in the future, thereby amplifying the multiplier effect of investment on economic growth. Furthermore, investment must emphasize social benefits. Government investments should focus on areas where market failures are prominent and there are significant positive externalities, directing funds towards foundational, public welfare, long-term, and strategic major projects, such as resource and environmental protection, social welfare, and technological innovation in key fields. (Economic Daily)
经济日报:扩大投资重在有效
Economic Daily: Expanding investment focuses on effectiveness.
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