Old Wine, New Bottles

Public-private partnerships (PPP) have been touted as a new engine for China’s investment growth, but upon closer examination, these arrangements rely far more heavily upon public than private investment contributions. Most PPP projects are still funded primarily by the banking system, and appear to be simply a new form of financing for local government investment vehicles, with only a marginal potential contribution to overall investment growth in 2017.

Posted August 1, 2017
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