HomeProduct Complimentary download China Jan-Apr rail investment up 22 pct for economy stabilizing

China Jan-Apr rail investment up 22 pct for economy stabilizing

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Publish time: 20th May, 2015      Source: www.cnchemicals.com
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China’s fixed-asset investment on rail industry surged 22% on year to 132.1 billion yuan ($21.6 billion) over January-April, as the government accelerated investment to help stabilize economy.Of this total, 117.2 billion yuan was injected into railway construction, up 20% on year.As Chinese authorities adapt to the country''s plateauing economy, the National Development and Reform Commission (NDRC) said earlier this year that it would "increase management of investment" in 2015 and give investment a "key role in stabilizing economic growth" .And Ma Kai -- vice premier of the State Council -- said that China planned to put over 800 billion yuan into rail construction and build rail lines with total length of 8,000 km.On May 18, China''s top economic planner – the NDRC -- approved the construction of six railways stretching more than 1,000 km and likely to cost about 250 billion yuan.The projects include four high-speed railway lines in eastern provinces of Shandong and Jiangsu, and in northeastern province of Liaoning, and two urban rail transits in the southwestern cities of Chengdu and Nanning.China has been promoting public-private partnerships to attract private capital into infrastructure construction and public enterprises, such as in railway investment and fund-raising.Though rail investment accelerated, transport demand seemed to decline amid a slowing economy, with 870 million tonnes of rail cargo shipment recorded for the first quarter, down 9% on year, the NDRC said.Poor sales led to a high debt ratio of 66.2% for China Railways Corporation (CRC) by end-March, with a total debt of 3.747 trillion yuan, up 1.95% from the end of last year.The CRC’s rail transport cost totaled 653.27 billion yuan in 2014, up 9.3% on year.In 2014, the NDRC approved projects worth 34 billion yuan for transportation infrastructure including railways, roads, airports and waterways.China''s economic growth slowed to 7% in the first quarter this year, down from 7.3% in the previous quarter.