China to Clean Up Excess PPP Borrowing in Fight Against Hidden Debt

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING: U.S. Eases Restrictions on Nvidia H200 Chip Exports to China; Alibaba Adds Cloud Unit Executive to Top Leadership Group; GigaDevice Soars in Hong Kong Debut as AI Demand Lifts Memory Chipmakers

LATEST: Poland Fines Temu $1.7 Million Over Misleading Discounts; From Silicon Valley to Shanghai: Gerald Yin’s Bet on Chipmaking in China; U.S. House Passes Bill to Curb China’s Cloud Access to AI Chips; Alibaba Adds Cloud Unit Executive to Top Leadership Group; U.S. Eases Restrictions on Nvidia H200 Chip Exports to China; Luxshare-Wingtech Deal Unravels Amid Legal Wrangling Over Indian Sites; XPeng Affiliate Aridge Eyes Hong Kong Listing as Flying Cars Near Takeoff; GigaDevice Soars in Hong Kong Debut as AI Demand Lifts Memory Chipmakers; Chip Designer OmniVision Soars in Hong Kong Debut; Humanoid Robot Startup X Square Nets Big-Name Backers in $143 Million Raise; U.S. Grants Targeted Drone Ban Exemptions, Keeps Pressure on China; Chinese AI Startup MiniMax Pops in Hong Kong Debut; China Drone Sales Slump as Police Tighten Grip on Unauthorized Flights; China to Review Meta’s Acquisition of AI Startup Manus; Chinese GPU-Maker Iluvatar CoreX Climbs in Hong Kong Debut With $5.3 Billion Valuation; China’s Zhipu AI Jumps in Hong Kong Debut; Nvidia Resumes H200 Chip Production for Chinese Market on Strong Demand; MiniMax’s Hong Kong IPO Oversubscribed 1,848 Times as AI Frenzy Builds; China’s Telecom Giants Back Smart-Glasses Maker RayNeo in $143 Million Funding Round; Robot-Maker Unitree’s IPO Expected by Mid-2026, Source Says

By Yu Hairong and Han Wei / May 22, 2019 02:59 AM / Finance

Photo: VCG

China’s Ministry of Finance ordered its provincial branches to inspect local governments’ borrowings for projects backed by public-private partnerships (PPPs) in its campaign to clean up hidden local debt.

Local finance authorities should complete reviews of PPP projects’ debt situations by the end of June and halt projects that violate borrowing rules and add to local governments’ debt burdens, according to a statement issued by the finance ministry.

China has stepped up scrutiny of PPP borrowings to prevent local governments from using the arrangements to disguise excessive debt. Between April 2018 and November 2017, a total of 1,695 PPP projects, involving investments of 1.8 trillion yuan ($260 billion), were revoked. By the end of March, the finance ministry registered 8,839 PPP projects with total investment of 13.4 trillion yuan.

Share this article

Open WeChat and scan the QR code