BEIJING - Public-private partnerships (PPPs) in the infrastructure sector will now be allowed to raise funds through asset securitization, according to a statement Monday.

As an important method of financing, asset securitization will help attract more private investors to participate in PPPs, according to the statement issued jointly by the National Development and Reform Commission as well as China Securities Regulatory Commission.

Infrastructure PPPs in line with China's national development strategy, such as those related to the Belt and Road Initiative, should be encouraged to use asset securitization.

Local securities regulators will be asked to improve related approval procedures, and help establish risk control systems, the statement said.

PPPs are collaborative projects between government and private companies.

Chinese authorities have explored funding infrastructure through PPPs since late 2013, amid growing concerns over rising local government debt incurred through local financing vehicles.

PPPs aim to leverage private sector investment to meet local government investment shortfalls.

Over 1,000 PPPs, with a total investment of about 1.8 trillion yuan ($0.3 trillion), have been inked so far this year, with private firms playing the leading role.