Beijing turning to private sector for infrastructure financing

The private sector could be about to play a larger role in funding state-run infrastructure projects, the government has suggested, as the economy struggles to balance boosting investment without adding to the debt burden.

The State Council announced on its website that 1,222 infrastructure projects totaling $363 billion were being funded by private sources, Caixin reports. It added that private companies have agreed to aid in financing eight new airports worth a combined $7.2 billion.

Growth in infrastructure spending saw a dramatic drop in recent months compared with last year, stoking fears of a widespread economic slowdown. Year-on-year spending growth slowed to just 4.2% from January to August, official data shows.