China Spawns Debt Market to Ease Burden on Local Governments
- China has 13 trillion yuan in public-private project filings
- First Capital sees up to 50 billion yuan in ABS notes in 2017
General Economy And Views Of Tiananmen Gate Ahead Of China's National People's Congress
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China is promoting a new debt market for infrastructure projects where it wants private noteholders to take losses if developments fail.
Regulators gave the green light last month for public-private partnerships with at least two years of operations and stable cash flows to sell asset-backed securities. The nation is seeking to lure more private money into infrastructure projects, while limiting its responsibility for the debt needed to fund them.