Caixin
Caixin Global – Latest China News & Headlines

Home >

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
Baidu to Relocate Part of U.S. Autonomous-Driving R&D Unit to China
Embattled Entrepreneur Jia Yueting Files for Bankruptcy
China Mobile CEO Li Yue Resigns
LATEST
In Unusual Move, Huawei Offers ‘No Backdoor’ Deal to India Amid Security Concerns: Report
Apple Under Fire for Handing Over Some Web Browsing Data to Tencent
China’s Tencent Resumes Streaming NBA Games
ZTO Express Announces Price Increase after 'Double 11'
Embattled Entrepreneur Jia Yueting Files for Bankruptcy
Finance Ministry Reaffirms Aim to Scrap Hydrogen Car Subsidies by 2020
China Mobile CEO Li Yue Resigns
Automation Specialist Gets Turbocharge From Beijing Plan to Eliminate Toll Plazas
Baidu to Relocate Part of U.S. Autonomous-Driving R&D Unit to China
German Wholesaler Metro Agrees to Sell China Business to Wumei
Huawei’s Harmony OS Will Compete Globally Within 2 Years, Founder Says
Tech Entrepreneurs Dominate Latest Hurun Rich List
BYD Suffers Third Successive Drop in Monthly EV Sales
U.S.-Listed Chinese KOL Company Falls 9% After Flood of Class Lawsuits
Sunac Buys Li Ka-Shing Development in Dalian For More Than $560 Million: Sources
Bridge Collapse in Jiangsu Kills 3
Apple CEO Defends Decision to Block App Used to Track Hong Kong Police Movements
Chinese AI Startup Develops Image Recognition System With Japan Shipping Giant
Gaming Giant Blizzard Gets Frosty Response to Hong Kong Gamer Ban
Apple Pulls Hong Kong Police Tracker from App Store in Latest About-Face
PPP Projects Not Included Under China’s Relaxed Special-Purpose Bond Rules

By Cheng Siwei and Denise Jia / Jun 21, 2019 04:32 AM / Economy

Photo: Bloomberg

Photo: Bloomberg

China’s relaxed rules on special-purpose bonds for infrastructure projects don’t apply to riskier public-private partnership (PPP) projects, a person close to the Ministry of Finance told Caixin.

That clarification may dash optimistic speculation sparked by a recent document issued by China’s central government allowing local governments to use proceeds from special-purpose bonds for certain infrastructure investments.

According to the document issued Monday by the cabinet, local governments can now use special-purpose bonds to raise project capital for major and strategic investments in highways, railways and electricity and gas projects.

The document requires that such infrastructure projects be physical projects funded directly by local governments. Those are not the same as PPP projects, which are often implemented through a special-purpose vehicle (SPV), the person said.

To prevent the new policy from being abused, the Ministry of Finance will launch a platform for the disclosure of local government debt information in the next couple of months, the person close to the ministry said. All projects eligible for special-purpose bonds will be published on the platform, the person said.

The central government has been tightening PPP regulations since 2017 as Beijing has grown increasingly concerned that some local governments are using PPP programs as disguised channels for raising debt.


Share this article
Open WeChat and scan the QR code