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Transport & Logistics

China to step up support for indebted railway sector

China will allow railway firms to generate more income from land development and from building new transport hubs in the latest move to step up financial support for the debt-laden sector, Reuters reported, citing a statement by the Chinese government. Under guidance issued by the cabinet, the government will “support railway transport firms to revitalize the use of existing construction land through independent development, transfer, lease or other means.” China Railway Corp. (601186.SHA), the national railway operator, has said it would raise its annual investment by RMB20billion (US$3.2billion) to RMB720 billion in 2014 to increase the number of lines it plans to build.

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