Many localities in China are faced with an outdated, segmented infrastructure system and a shrinking budget. However, the state-led promotion of Public-Private Partnerships (PPPs) in China is providing an innovative solution. This paper looks at financing innovations in China such as industrial funds and assetbacked securitisation for PPP projects. Particularly, this paper empirically studies the characteristics of project revenue bonds and PPP asset-backed securities (PPP-ABS) in China. The study finds that the majority of social investors remain state-owned enterprises (SOEs) and returns on whole business securitisation (WBS) of projects could vary with the volume issued and the credit of the company. Securitisation not only solves the problem of limited source of financing, but also improves the efficiency of management. While securitisation of PPP projects can succeed in tapping social capital to invest infrastructures, the banking system should handle with caution the credit risk and default risk caused by rising leverage of PPP special purpose vehicles (SPVs).
To be fair, the Chinese government also frequently imposes unilateral sanctions or designated restrictive measures for diplomatic purposes in dealing with disputes in foreign or domestic affairs. On China's position and practice, see the chapter by Congyan Cai in this book. 3 Such as the treaty signed in 2015 by Iran and the six major world powers (P5+1) -the Joint Comprehensive Plan of Action (JCPOA) often known as the 'Iran Deal'. P5 stands for the five Permanent Members of the UNSC. Plus 1 is Germany along with the EU.4Charlotte Beaucillon, 'Panorama de la pratique contemporaine des sanctions extraterritoriales' in Société française de droit international (eds.), Extraterritorialités et droit international (Pedone 2020).
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