(Yicai Global) Sept. 30 -- Longyuan Construction Group Co. [SHE:600491] and its subsidiary CITIC Securities Co. [SHE:600030] will jointly set up a CNY3 billion (USD450 million) fund to invest in public-private partnership projects.
The two will establish Jiaxing Chengpu Co., with Longyuan Construction investing CNY1 billion and CITIC Securities, CNY2 billion, the Shanghai-based building contractor said yesterday.
Public-private partnerships are schemes funded and operated through the collaboration of one or more private enterprises with the government. China's government is pushing such projects to help boost the economy and build infrastructure through private investment.
According to media reports, the latest batch of confirmed PPP projects are worth a total of more than CNY1 trillion. PPP projects in China mainly involve municipal engineering, eco-friendly construction and transport.