Caixin Global – Latest China News & Headlines

Home >


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

Chinese Companies Usher in Age of Synthetic Meat
AI Startup Plans IPO at Value of at Least $1 Billion — in China
Huawei’s First 5G Commercial Phone Gets Warm Response Despite Limited Networks
Cathay Pacific CEO Hogg Resigns Amid Hong Kong Protests
Ninebot’s New Scooter Can Drive Itself Back to Charging Stations
Oppo to Unveil New Smartphone With 20x Zoom
Chinese Companies Usher in Age of Synthetic Meat
Record-Smashing Chinese Animation to Get Overseas Releases
WTO to Arbitrate China’s Complaints About U.S. Solar-Cell Tariffs
Vipshop Stock Soars After Q2 Results Beat Expectations
Japan Replaces China as Largest Holder of U.S. Government Debt
Huawei’s First 5G Commercial Phone Gets Warm Response Despite Limited Networks
AI Startup Plans IPO at Value of at Least $1 Billion — in China
Alibaba Q2 Revenue Jumps 42%, Beating Estimates But Slower Than Year Earlier
Baidu’s $66 Billion Dive Knocks It Out of China’s Internet Top 5
Beijing Grants Foreign Investors Wider Access to Entertainment Industry
Tencent-Backed Maoyan Turns Profit on Strong Ad Growth
Chinese App-Makers Smell Opportunities in Strict Trash-Sorting Rules
Casino Giant Galaxy Entertainment’s H1 Profit Drops 7% as High-Rollers Stay Away
Chinese Internet Sector Grows 17.9% Year-on-Year: MIIT
Xiaomi Receives Licenses for Second 5G Phone
Coal Industry Looks to Robots for Increased Safety
No Investor Love for Tencent, Lenovo and Luckin in Latest Reports
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
Copyright © 2019 Caixin Global Limited. All Rights Reserved.