CDB may invest in Beijing-Shanghai railway

The controlling shareholder of the newly established Beijing-Shanghai High-speed Railway Company is in talks with China Development Bank over a potential US$1.37 billion investment in the railway project linking China’s two largest cities, China Business Net reported (in Chinese). China Railway Investment Corporation holds 52% of Beijing-Shanghai High-speed Railway, whose registered capital will be increased to US$16 billion from the current US$15 billion as the project’s budget exceeded initial expectations. Ping An Insurance, another shareholder in the company, may increase its investment, according to a person familiar with the situation. Bidding on the railway’s construction closed on Saturday, though the project will be delayed for about 10 days as the contracts await approvals from the National Development and Reform Commission.