China to boost railway spending

China’s Ministry of Railways will increase spending on railroads and bridges to US$74 billion for this year, as part of wider efforts to boost the slowing economy through investment, Bloomberg reported. This is the second increase in July for a combined 14% rise in planned railway spending. The ministry also plans to issue US$4.2 billion in bonds on Wednesday in order to finance the construction of more than 40 railroads. China’s State Council additionally moved to increase investment spending, saying it would publish a list of projects in utilities, health care, telecommunications and railways that would accept private investment. “Premier Wen Jiabao said China will do something to boost confidence, and this is fresh evidence,” said Lu Zhengwei, chief economist at Industrial Bank in Shanghai. China has moved to increase investment to help combat an economic slowdown, with GDP growth having fallen to 7.6% in the second quarter.