As China's public finances are not as strong as it used to be, one of the key reasons why the China promote the public-private partnership (PPP) vigorously is to lever private capital to fill the funding gap for infrastructure investments.

Anbound’s research team is of the view that the PPP model imported from the developed countries is not suitable to be promoted on a large scale as there are some problems with its computability with China’s market.

The Chinese government should instead open up its market to attract social capital, making up for the shortcomings of the public services and lifting domestic demand while benefiting the people’s everyday life. This way could be more efficient that the PPP model.