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: TCL Tech to Buy Back Panel Unit Stake for $1.3 Billion; Robot Startup Galaxea AI Raises $291 Million; Optical Interconnect Maker Lightelligence Files for Hong Kong IPO

LATEST: Robot Startup Galaxea AI Raises $291 Million; TCL Tech to Buy Back Panel Unit Stake for $1.3 Billion; CAS Space Seeks IPO as China’s Reusable Rocket Race Heats Up; U.S. Chipmaker Onsemi Doubles Down on China With New Shanghai Headquarters; Optical Interconnect Maker Lightelligence Files for Hong Kong IPO; CAS Space Launches Reusable Rocket in China’s Satellite Push; DeepSeek Goes Out for 10 Hours Amid China’s AI Demand Surge; OpenClaw Craze Is Driving Next Phase of AI Development, Insiders Say; China, South Korea Robotics Firms Explore Embodied AI Cooperation; Analysis: Meta’s Manus Deal Faces Scrutiny in China Over Tech Exports, Antitrust Concerns; Chinese GPU Maker MetaX Doubles Revenue Amid Push for Domestic Chips; Kuaishou Ramps Up AI Commercialization as Kling Revenue Hits $150 Million; Alibaba Launches AI Agent for Small Businesses With International Ambitions; China Telecom to Boost AI Spending Amid Capex Cut and Slowing Growth; Siemens Unveils 26 China-Made Products in Industrial AI Push; Alibaba’s Qwen Launches AI Ride-Hailing Feature to Rival Didi; AI Agents to Reshape Global White-Collar Economy, Alibaba Chairman Says; China Opens First National Testing Center for Flying Cars; Tencent Folds AI Lab Into Hunyuan Team in Major AI Overhaul; Unitree Robotics Files for $608 Million STAR Market IPO

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