Beijing municipality is considering the issue of asset-backed securities as it plans to pour more than 100 billion yuan (about HK$93 billion) into infrastructure development in the next two years.
Vice-mayor Zhang Mao said the city would invest the money to ensure it could maintain growth momentum.
Part of the funding would come from the proceeds of an issue of 100 billion yuan in treasury bonds, Mr Zhang said after the Beijing/Hong Kong Economic Co-operation Symposium.
Beijing municipal planning commission vice-director Guo Junqing said Beijing would receive about three billion yuan from the issue, which would be invested in 17 infrastructure projects to mark the 50th anniversary next year of the establishment of the People's Republic of China.
He said the city was working on diversifying the funding methods as it relied more on companies, instead of the government, for the construction and operation of infrastructure projects.
Apart from the build-operate-transfer method, the city also planned to use the future cash flow from infrastructure projects as collateral to issue bonds, which would be a breakthrough in project finance in the mainland.
Mr Guo said the government was considering the establishment of an investment return fund to provide reasonable returns for investors on infrastructure projects.
