MNI BRIEF: China Says PPP To Be Handled In Order Of Priority

Local governments should prioritise Public Private Partnerships (PPP) according to economic and social returns, and consider scaling down delayed or slow-progressing projects, according to guidelines issued from the State Council Wednesday.

Authorities should accelerate the construction of PPPs approaching completion by expediting acceptance procedures and bringing them into operation as early as possible, the guidelines detailed. 

Governments shall negotiate fairly, adjust return and discount rates, and appropriately extend cooperation periods, the notice said.

Policy advisors and economists told MNI there remains scope for further rate cuts from China's central bank later this year if economic pressures intensify. (See MNI PBOC WATCH: Ample Liquidity Ensured Amid Bull)