A research brief published by Anbound Analysis recently points out that the investment in mining sector in China may face huge policy risks.

   Influenced by price soaring of mineral resources worldwide, China's mining industry is entering an unprecedented high-speed growth period. The Ministry of Land and Resources Information Center predicts that hundreds of billions of capital have flown into China's mining sector.

   According to Wang Yanguo, general secretary of China Mining Association, sources of investment in China's mining sector have three:

   1. Capital input of certain monopolistic type, such as investment made by PetroChina and Sinopec.

   2. Capital input from State-owned and nongovernmental mining enterprises.

   3. Capital input from other sectors rather than mining sector. Some real estate, IT and electronic products have tried to purchase mining right, and this amount of capital input is increasing.

   To protect mineral resources, China has made special stipulations on the qualification of enterprises that will develop important mineralization bets in the latest revised "National Planning on Mineral Resources" and the "national Planning on Geological Prospecting of Minerals", it is learned.