Railway finance to get a boost
By Xin Dingding (China Daily)Updated: 2007-05-02 08:56
Last year, Datong Qinhuangdao Railway and GuangzhouShenzhen Railway, too, raised 15 billion yuan ($1.9 billion) and 10.3 billion yuan ($1.3 billion) from the stock market.
The ministry also raised 40 billion yuan ($5.1 billion) through railway construction bonds.
In the past few years, more than 30 provincial and municipal governments have signed collaboration agreements with the ministry, which last year also raised funds from them and domestic strategic investors.
At least 70 social investment institutions and enterprises have signed deals with 26 jointly funded railway companies, creating 44 billion yuan ($5.7 billion) in social equity funds, including 2.5 billion yuan ($321.5 million) in private capital.
According to the ministry's 11th Five-Year Plan (2006-10), 17,000 km of new tracks will be laid across the country at a cost of 1.5 trillion yuan ($193 billion), double the amount spent during the previous five-year plan.
The railways' move is "a big breakthrough", Citic Securities' Research Department Director Yu Jun said.
The money raised from the stock market hit a record last year.
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