Latest News:  


Nation set to launch new railway corporation

(Global Times)

08:14, March 15, 2013

China's State Council has approved the establishment of China Railway Corporation with registered capital of 1.04 trillion yuan ($167.4 billion), following the government's decision to dissolve the Ministry of Railways (MOR), according to a statement posted on the central government's website Thursday.

The Ministry of Finance will fund the setting up of the company, while the Ministry of Transport and the newly established State Railway Administration will supervise its business and performance, the statement said.

The new company will enjoy favorable policies extended to the MOR in the past. New bonds issued to pay for the construction of railways will also be guaranteed by the government, the State Council said.

The new railway company will also take over the assets, debt and employees of the MOR. The government will not ask the new railway company to deliver dividends until the debt problem is solved, according to the statement.

The MOR has faced numerous problems over the past few years, including heavy debts from funding high-speed rail lines, waste and fraud. Its total outstanding debt hit 2.7 trillion yuan at the end of the third quarter of 2012.

The value of the MOR's assets is also much lower than expected, the National Business Daily (NBD) reported Thursday citing industry insiders and railway experts.

The MOR has assets worth 4.3 trillion yuan, according to figures provided by the MOR's auditor.

However, the MOR's assets should be worth at least 20 trillion yuan, given that one kilometer of railway is worth 200 million yuan and the total length of the railways nationwide is 100,000 kilometers, the NBD report said, citing Wang Mengshu, deputy to the National People's Congress and scholar of the Chinese Academy of Engineering.

But the report also cited an unnamed analyst who said that the data for the MOR could not be wrong since the ministry has no reason to undervalue its assets.

We recommend:

MediaMarkt closes all Chinese stores

Top 10 Chinese cities with highest urbanization quality

Chinese investment in Africa: Digging deeper

E-commerce changes commercial activities

Nation may limit gold to 2% of foreign reserves

Lu Zhaoxi named Alibaba's new CEO

Email|Print|Comments(Editor:MaXi、Liang Jun)

Leave your comment0 comments

  1. Name


Selections for you

  1. New-type guided missile frigate 'Bengbu' is commissioned to PLA Navy

  2. 14th Chinese naval escort taskforce in drill to rescue hijacked ship

  3. Kim Jong Un visits Defence Detachment

  4. Panic over dead pigs prompts satire

  5. Hailstones diameter hit SW China

  6. Chile unveils world's largest observatory

  7. Centenarian couple become cewebrities

  8. Anchors join Shenzhen TV

  9. South Africa is ready for BRICS

  10. Cities with highest urbanization quality

Most Popular


  1. How to start transformation and upgrading?
  2. Nation facing energy security threat: experts
  3. Plenty of hard work still to be done on rail reform
  4. 'Made in China' not equal to 'self-made in China'
  5. Efforts needed to nurture ethnic culture, language
  6. Filipina maids or local ayi?
  7. China won't take part in currency wars
  8. Long live the kingdom of bicycles!
  9. Income gap still hot topic
  10. Bigger does not always mean better for megacities

What’s happening in China

What house can you buy with 1 million yuan in China?

  1. Anti-infection drugs induce most adverse effects
  2. Rainstorm widow sues over car plate
  3. White collars to have more travels this year
  4. Parents taking children to beg lose guardianship
  5. East China fire kills 6 family members