定陶| 黄石| 施甸| 永宁| 阜新市| 乌苏| 阿拉善右旗| 巨野| 呼图壁| 望江| 青田| 江孜| 长垣| 沙雅| 甘肃| 宣威| 凤冈| 偏关| 漳州| 盖州| 曲阳| 亚东| 元氏| 灌云| 石阡| 叙永| 涿鹿| 资源| 阿克塞| 突泉| 荆州| 湛江| 蒲县| 承德县| 黑山| 乌当| 保山| 晴隆| 宝应| 蕉岭| 临澧| 台儿庄| 凉城| 林周| 潢川| 江都| 建瓯| 湟源| 德格| 颍上| 澎湖| 贵阳| 新余| 南靖| 比如| 乐昌| 高雄市| 曹县| 莱山| 承德市| 潼关| 永和| 独山子| 同江| 呈贡| 红安| 连云港| 海门| 登封| 东沙岛| 明光| 扶沟| 垦利| 福海| 疏勒| 汉南| 朝阳县| 衡阳县| 德保| 临夏县| 阿图什| 汤旺河| 龙泉驿| 长葛| 阿巴嘎旗| 南溪| 响水| 沂南| 铜梁| 屯留| 下陆| 延寿| 清河门| 鄂州| 张北| 梁山| 白河| 翼城| 孙吴| 宝清| 召陵| 南郑| 广安| 宁南| 临夏市| 霍邱| 麻阳| 乌拉特前旗| 泰兴| 五通桥| 微山| 贵德| 许昌| 邻水| 带岭| 泽州| 东胜| 新干| 柳林| 高唐| 疏勒| 嘉荫| 紫金| 通河| 南乐| 合肥| 化州| 砚山| 靖远| 西固| 邹平| 水富| 武功| 蕲春| 松原| 高阳| 武隆| 房山| 钟祥| 卓尼| 都江堰| 平罗| 西乌珠穆沁旗| 古县| 山东| 宜黄| 于田| 双辽| 南岳| 广汉| 蒙自| 渑池| 二道江| 石阡| 株洲市| 宁陵| 平顶山| 沙河| 枞阳| 潼南| 西固| 炉霍| 高陵| 上林| 桦川| 榆树| 恒山| 泾阳| 金阳| 全南| 额尔古纳| 琼海| 柳林| 三明| 五莲| 博山| 鞍山| 腾冲| 维西| 南海| 鞍山| 张家川| 榆林| 合山| 承德县| 威县| 丹东| 温宿| 富锦| 凌海| 左云| 龙泉| 乌兰浩特| 昭平| 台湾| 哈巴河| 巴楚| 钟祥| 荥经| 安庆| 覃塘| 内丘| 甘孜| 南安| 烟台| 宝安| 安徽| 常山| 镇康| 元氏| 天长| 容县| 新青| 锦州| 特克斯| 拉萨| 那曲| 新宁| 双阳| 龙山| 绵阳| 稷山| 长沙县| 福海| 永定| 牡丹江| 廊坊| 安县| 林州| 新县| 襄阳| 榆中| 沂源| 阳朔| 绥中| 卢氏| 怀安| 毕节| 上高| 江油| 湘阴| 会泽| 西昌| 淮安| 保德| 无为| 扶绥| 临潭| 普兰店| 新会| 赵县| 赵县| 新县| 五台| 塔城| 宁陵| 固始| 泽州| 宿迁| 九寨沟| 龙岗| 南澳| 扶余| 东西湖| 广东快乐十分分析软件
LINE

Text:AAAPrint
Economy

China alerts PPP, investment fund irregularities

1
2018-02-20 09:10Xinhua Editor: Gu Liping ECNS App Download
标签:辽大 福彩pk10北京赛车 中国现代文学馆

China's central government has flashed red on irregular behavior in public-private-partnership (PPP) projects and local government investment funds.

"Local governments are encouraged to form public-private-partnerships with private companies, but local governments and private companies must cooperate on a benefit and risk-sharing footing," the Ministry of Finance (MOF) said Thursday in a statement.

Local governments can set up investment funds alone or jointly with private companies, but such funds must operate on a legal and market-oriented basis, it stressed.

The statement was released on the heels of a joint notice issued Wednesday by several governmental agencies including the MOF to ask provincial authorities to examine their financing practices as soon as possible and to rectify all irregularities by the end of July.

"Unless agreed by the central government, local governments and their subsidiary agencies are forbidden to promise to buy back private companies' investments, and may not undertake investment losses of private capital in any form," noted the statement.

Local governments are not allowed to promise a minimum return on investment to private companies in any form, and they are forbidden to undertake all the risks in such projects, it added.

Local governments have been looking to government-supported investment funds and PPP, a collaborative investment model between government and private companies, as ways to fund infrastructure projects as concern rises over local government debt and the central government tightens its grip on local financing platforms that were previously widely used.

By the end of last year, combined debt of central and local governments in China stood at 27.3 trillion yuan (4 trillion U.S. dollars), with a debt-to-GDP ratio of around 36.7 percent and the total outstanding local government debt climbing to 15.3 trillion yuan.

"The authorities are strengthening supervision of both capital source and capital use in PPP projects and local investment funds," said Zheng Chunrong with Shanghai University of Finance and Economics.

"PPP projects picked up momentum in 2016, but problems including the uneven sharing of risk among participants are emerging," said Li Qilin, a senior analyst with Lianxun Securities.

Last year, the number of signed PPP projects and total investment more than quadrupled from 2015, with private enterprises participating in more regions and sectors than ever before.

PPPs will become the main financing model for Chinese local governments in infrastructure investment up to 2020, with state-owned enterprises (SOEs) to play the leading role, global ratings agency Fitch predicted in a recent report.

The PPP model is in its infancy in China and SOEs have emerged as the main partners of local governments, rather than private investors, Fitch cautioned.

Financial regulators are increasing financial risk control and de-leveraging, as solid GDP growth in the first quarter provided more room for such adjustments, conducive to long-term growth.

"The document has further standardized local government debt management. They are not allowed to increase debt in the name of PPP projects," said Li with Lianxun Securities.

Li predicted that private companies will be more prudent in cooperation with local governments, and this will help improve quality of joint projects.

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2017 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
招宝山街道 城郊街 上海浦东新区金桥镇 大明宫街道 南珠东大街
樟树园 金家冲村 新发朝鲜民族乡 隔河头乡 山下埔凸 宝鸡市 景贤乡 西后街村
任奥全球推官方网站 北京赛车pk10计划软件使用技巧经验分享 北京pk10是国家开的吗 北京赛车pk10开奖直播皇家 幸运飞艇博彩平台出租
石桥铺娱乐场所招工 博彩玄机 五星娱乐场在线娱乐场 万达娱乐城的网址 黑猫大乐透2015054
双色球91期谜语 云南快乐十分任五技巧 足彩庄家盈亏指数 重庆时时彩建站 百万时时彩彩
北京快3开奖号码 苹果河北11选5助手 大红鹰娱乐城注册 娱乐城免费筹码 博彩飞扬2011长治
2014年保时捷线上娱乐 王子娱乐城世界信用第一娱乐城 体彩大乐透奖金怎么看 双色球第2014084期预测 哪个彩票平台好