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
ByteDance-Owned TikTok Was World’s Most Downloaded Social Media App in January
China’s Pony.ai Secures $400 Million from Toyota to Develop Driverless Cars
Baidu Expects Q1 Revenue to Fall as Much as 13% Amid Covid-19 Outbreak
LATEST
IDC Forecasts First-Quarter Plunge in China Smartphone Shipments
Huawei Mulls Its First European 5G Plant in France Amid U.S. Tensions
Spring Ahead for Suffering Tourism Sector?
Baidu Expects Q1 Revenue to Fall as Much as 13% Amid Covid-19 Outbreak
China’s Pony.ai Secures $400 Million from Toyota to Develop Driverless Cars
Swings and Roundabouts for Youdao, as It Reports Both Strong Revenue and Widening Loss
ByteDance-Owned TikTok Was World’s Most Downloaded Social Media App in January
Weibo Shares Plunge on Lower-than-expected Earnings, Weaker 1Q Guidance
China’s Handset Shipments Plummet Nearly 40% in January
China Has More Billionaires Than U.S. And India Combined: Hurun Report
Didi to Launch Food Delivery Service in Japan
NIO Strikes Government Deal with New Headquarters and New Funding Plan
Daimler Slims Down China Venture in Global Cost Saving
U.S. Transport Agency Bans Employees From Using TikTok For Work
Huawei Launches New Foldable Smartphone, Targets Android Market with HMS
Industries Switch Up Production Processes to Use Byproducts to Produce Medical Supplies
China Plans to Mass Produce Driverless Cars by 2025 Later Than Previous Forecast
U.S. Companies Fluctuate on Wall Street as Covid-19 Hits Their 2020 Forecasts
Snack Shop Serves Up First IPO from Wuhan Since Covid-19 Outbreak Took Hold
Chinese AI Firm Laiye Secures $42 Million in Series C Funding Round
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