China's net investment in PPP start-up projects amounted to 2 trillion yuan.

The Government of the Ministry of Finance and the Center for Social Capital Cooperation (PPP) of the Ministry of Finance of China (hereinafter referred to as the PPP Center of the Ministry of Finance) announced the implementation of the project management database of the National PPP Integrated Information Platform in the first half of 2019. In the first half of the year, 382 net additional projects and 471.4 billion yuan (RMB, the same below); 1120 net additional landing projects and 1.6 trillion yuan of investment; 1209 net additional start-up projects and 2 trillion yuan of investment.

The number of net increase projects in the first half of the year was 230 less than the same period last year, and the net increase investment of projects was 710.8 billion yuan less than the same period last year; the net increase of landing projects was 181 more than the same period last year, and the net increase of investment of landing projects was 246.1 billion yuan more than the same period last year; the number of net increase of start-up projects was 684 more than the same period last year, and the net increase of start-up projects was 684. Investment increased by 1.1 trillion yuan over the same period last year.

PPP Center of Ministry of Finance indicated that since 2014, there have been 9 036 projects and 13.6 trillion yuan of investment in the management bank; 5 811 projects and 8.8 trillion yuan of investment, with a landing rate of 64.3%; 3 3446 projects and 5.1 trillion yuan of investment, with a starting rate of 59.3%.

According to the industry, in the first half of the year, transportation, municipal engineering, comprehensive urban development, ecological construction and environmental protection, forestry were the top five investment items in the net increase project of the management database. According to the regional division, the top five net increased investment in the management bank are Sichuan, Henan, Hebei, Chongqing and Tianjin. Overall, the potential financial risks of PPP projects have been effectively monitored and prevented. As of July 14, 2019, the data of monitoring and early warning system show that according to the statistics of fiscal level (including provincial level, Prefecture level, district and county level), 2570 administrative districts with PPP projects in warehouse in China, 2517 administrative districts (97.9%) account for the fiscal expenditure responsibility of PPP projects from the general public budget in each year, accounting for 97.9% of the general public budget. The proportion (hereinafter referred to as the proportion of financial commitment) remains below 10%, which meets the requirements of financial affordability. Fifty-three administrative regions (2.1%) accounted for more than 10% of the total financial commitment in the coming years, 48 more than in the end of May. The main reason is that the final accounts of general public budget expenditure in 2018 published by many administrative regions are smaller than in 2017, which makes the forecast of general public budget expenditure in the future year updated online according to policy requirements smaller accordingly. The proportion of fiscal expenditure responsibility increased accordingly. At present, these 53 administrative regions have been suspended from warehousing new projects, and will properly handle their warehousing projects.