China's stock market regulator said on Friday that several infrastructure projects which use a public-private partnership (PPP) model have been approved to issue securities, letting them tap a new source of funding.
Beijing has promoted the PPP model, which channels private money into public infrastructure projects, as local governments reel under heavy debt. But private investors have shown only lukewarm interest in such projects, which typically lock up capital for lengthy periods.
The China Securities and Regulatory Commission (CSRC) said on its official microblog that the Shanghai and Shenzhen stock exchanges have approved the securitisation schemes for multiple PPP infrastructure projects.
"Asset securitisation can make existing PPP assets more liquid, expand the funding channel for infrastructure projects, lower financing costs, and better attract private capital participation," CSRC said.
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