Micro Stimulus: ¥100 Billion In PPP Plus 2% Interest Rate Subsidy

Bank loans and foreign capital are becoming more scarce, so projects require other financing channels.

iFeng: 财政部再发PPP大礼包:1000亿+12亿+2%
State Council executive meeting raised the issue of funding through the establishment of guiding PPP, to solve the investment funds, it is indeed a new way out.

Currently, the way to get the key investment project funds have capital projects, corporate bonds and other bonds and bank loans.

Among them, the proportion of project capital reserve requirements very strict, such as railway project of its own capital ratio needed to reach 25 percent, roads and urban transit own capital ratio of 25%, 20% affordable housing. While corporate bonds require NDRC approval, if it is convertible (into shares), etc. approved by the CSRC, and the rest you need bank loans.

...Vice president of China Investment Association Liu Huiyong noted, PPP guide funds, investment funds can solve the problem, if the capital ratio decreased, corporate bonds and financial loans ratio increase, which can promote the overall investment funds the construction of major projects.

Benefits guide funds, the government acquire the money, other social capital to follow up, if the income is relatively assured, businesses and institutions to join should be very positive. "It can make up a large project loans and insufficient own capital shortage problem." He said.
Another issue is local governments. Many projects are profitable and have willing private partners, but because the profits are also privatized and local government revenue isn't greatly affected, the local officials do nothing to help the projects along.
Many private companies have been willing to pay, through the development of ecological agriculture land improvement big gains, but because it is the local government revenue increase is not, therefore, the local government does not actively promote this project.
Is anyone noticing a pattern in China's economic problems? Local governments are at the center of nearly all of them.

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