China rail opens to private investment

China’s railway industry will open to private investment on an unprecedented scale, that’s according to a document released by the Ministry of Railways.

Construction projects which are currently managed by China’s 18 railway bureaus will be open for bidding in the local market before the end of June. In addition to that, subsidiaries will be allowed to list shares, and pension funds are welcome to invest in railway companies.

The ministry is also calling for more supervision over the bidding process, to ensure its transparency and fairness, and prevent power-for-money deals.

China’s railway construction projects came under harsh public scrutiny, after last July’s deadly collision between two high-speed trains in Zhejiang province.



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