Many banks in China have stopped........>

CHINA PRESS: Many banks in China have stopped accepting loan applications for

new public-private-partnership (PPP) projects as authorities root out

unqualified projects that may undermine financial stability, the Economic

Information Daily reported citing industry sources. 

 - Daily highlighted a November circular, known as Document 92, by Ministry of

Finance that called for scrapping projects without proper preparation or failed

to inject the agreed capital, daily said. 

 - Some regional projects were halted awaiting assessment, particularly if the

local government has weak fiscal standing, daily said.

***COMMENT: Part of China's three-year campaign to prevent contagion of

financial crisis. PPPs were touted as a less risky alternative to LGFVs (local

government financing vehicles) as they supposedly wouldn't place debt on

government's balance sheet. In fact, many PPPs are in name only and it's not

clear if the government is off the hook in the event of a failed project.