China promotes bonds issuance to support PPP projects

BEIJING — China will encourage bond issuance to facilitate public-private-partnership (PPP) projects, the country's top economic planner announced Wednesday.

The government will accelerate approvals for bonds issuance in PPP projects and issue favorable policies to firms with high credence ratings, according to a guideline released by the National Development and Reform Commission (NDRC).

The guideline aims to make more financing options available for PPP projects in the areas of infrastructure and public service, said NDRC.

NDRC requires bond issuers to disclose information including possible risks, and protection mechanisms to investors before trading.

China has been looking to PPP, a collaborative investment model between government and private companies, as a way to fund infrastructure projects amid concerns over high local government debt.

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.

The strong momentum continued into the first quarter of 2017, which saw 28 percent more PPP projects inked year-on-year.