State Owned Railway Looks into Inviting Private Investors
China Railway Corp. has plans to look for private investment for a planned railway development fund that is said to be launched this year. Although the railway is owned by the State the move show that the government is willing to deepen reforms of its state owned enterprises and open its protected industries including petroleum, finance, telecom, railway and power to private investors.
Although detailed plans for the investment funds are still being formulated and a framework is still yet to be established during the first half of the year. China Railway is also considering creating a national rail development fund that has a fixed rate of return and establishes an investment fund that will be used for specific projects.
The company has also pledged to speed up railway investment that will assist the slowing economy as what the company did last March that took over defunct railway ministry’s businesses as it spent US$ 100 billion to construct 6,600 kilometers of new railway lines this year. China Railway decision to invite private investors came a few days after China National Petroleum Corp. opened up six business areas to private investors.