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PR Newswire
15-03-2013, 06:09 PM
Will this open up opportunities to private company operating in China?
China to set up S$210 billion railway company
China’s Cabinet has approved the setting up of a railway company with a registered capital of 1.04 trillion yuan (S$210 billion), following the government’s decision to dissolve the scandal-plagued Railways Ministry.
The Ministry of Finance will fund the setting up of the firm, while the Ministry of Transportation and the State Railway Administration will supervise its business and performance, the government said in a statement.
The new company will enjoy favourable policies extended to the Railways Ministry in the past, the government said. New bonds issued to pay for the construction of railways would also be guaranteed by the government.
Deputy central bank governor Liu Shiyu said the new railway company would take over all debt left behind by the defunct ministry.
The ministry’s total outstanding debt hit 2.7 trillion yuan at the end of the third quarter. The government has pledged to open the rail industry to private investment on an unprecedented scale. REUTERS
http://www.todayonline.com/chinaindia/ch...ay-company
China to set up S$210 billion railway company
China’s Cabinet has approved the setting up of a railway company with a registered capital of 1.04 trillion yuan (S$210 billion), following the government’s decision to dissolve the scandal-plagued Railways Ministry.
The Ministry of Finance will fund the setting up of the firm, while the Ministry of Transportation and the State Railway Administration will supervise its business and performance, the government said in a statement.
The new company will enjoy favourable policies extended to the Railways Ministry in the past, the government said. New bonds issued to pay for the construction of railways would also be guaranteed by the government.
Deputy central bank governor Liu Shiyu said the new railway company would take over all debt left behind by the defunct ministry.
The ministry’s total outstanding debt hit 2.7 trillion yuan at the end of the third quarter. The government has pledged to open the rail industry to private investment on an unprecedented scale. REUTERS
http://www.todayonline.com/chinaindia/ch...ay-company
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