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Funds flow back to China's railway sector

New funds appear to be flowing back into China’s railway sector, more than three months after a deadly train crash and accusations of mismanagement of funds halted construction on thousands of miles of track, the Wall Street Journal reported. The state-run Xinhua news agency Tuesday quoted unnamed sources as saying that the Ministry of Railways expects a funding injection of US$31.45 billion soon. The same day, bullet-train and locomotive maker CSR Corp (601766.SH, 1766.HKG) said it received a US$954 million payment from the ministry for equipment late last month. Railway stocks have risen in recent days on hopes that new financing will be unlocked; markets are likely to interpret any fresh spending by the government as an effort to buoy the economy in the face of slowing growth.

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