Dec 26 - Railway Investment to Be Cut in the Coming Year

Source: China Business News, ChinaScope Financial (Data)

+   Sheng Guangzu, Minister of Railways, announced on December 23 that China plans to invest only CNY 400 billion in railway infrastructure construction in 2012, a significant drop from the budgeted CNY 700 billion investments in 2011.

+   Statistics from the Ministry of Railways show that from January to November, fixed asset investments totaled CNY 491.6 billion, down 28.4% year-on-year. Of this amount, CNY 396.3 billion was invested into railway infrastructures, a 34.7% year-on-year decrease.

+   The Ministry of Railway is experiencing stricter bank lending and diversification of financing  sources will be the primary goal in future reforms. All indicators point to a slow down of China’s railway construction.

+   Related Data: Fixed Asset Investment in Railways

Investment activities of Chinese railways are slowing down.

For more data on other statistics about Chinese railway system, please visit www.chinascopefinancial.com

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