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Analysts expect the market would likely stage a rebound in the second half of 2019 with more supportive government measures set to bolster confidence.

Analysts have highlighted the need for private and foreign capital to boost investment as local governments, facing a funding gap of trillions of yuan, look for ways to spur big construction projects.

And, having responded to the public's previously expressed concerns, the bill is well thought out as it contains many safeguards to prevent any abuse of the mechanism, including the gate-keeping of Hong Kong's world-renowned judicial system.

Andy Sack

Analysts attributed the fast FDI growth to effective policy that has boosted the confidence of foreign investors, as well as the accelerated process of industrial restructuring.