Bank of China (601988.SH, 3988.HK) said it plans to invest US$1.1 billion in a railway project linking Shanxi and Shandong provinces, Reuters reported. The investment – made by Bank of China’s Hong Kong-based unit, Bank of China Group Investment – will acquire a 14.5% stake in the railway operator, which is soon to be established with US$7.6 billion in registered capital. The Shanxi-Shandong railway will be built over the next four years with a total investment of US$14.6 billion and will primarily be used for transporting coal. The announcement comes a year after China announced an infrastructure-driven US$586 billion stimulus package, which stepped up railway investment by 67% in 2009. In April, Bank of China also agreed to acquire a 4.5% stake in Beijing-Shanghai High-Speed Railway.
Categories