Date
17 August 2017
China Announces 2010 GDP Figures

The Big Picture: RAILWAY INVESTMENTS

China Railway Corp. will invest 630 billion yuan (US$104 billion) to expand the nation’s railway network by at least 6,600 kilometers in 2014, China National Radio reported Thursday.

The investment size is less than last year’s 660 billion yuan as it excludes a 30 billion yuan investment in Shenhua Group Corp., parent of China Shenhua Energy Co. Ltd. (01088.HK), Ji Jialun {紀嘉倫}, secretary of the transportation committee under the China Railway Society, was quoted as saying in a report by Aastocks.com. The amount is within expectation, Ji said.

Sheng Guangsu {盛光祖}, party secretary of China Railway Corp., which held its first meeting on Thursday since its establishment last year, said the company aims to boost the number of the railway passengers by 10 percent to 2.27 billion in 2014 from 2 billion last year. It will also seek to increase cargo deliveries by 2 percent to 3.28 billion tons for the period.

Last year, the country completed the reform of the railway sector, separating its business operations from the government’s regulatory role. The pace of railway development, together with the reform of the train fee mechanism and overseas railway investment, is expected to accelerate this year, observers said.

The central government’s role in rail freight pricing could change from setting rates to simply suggesting levels if an industry proposal is endorsed by the National Development and Reform Commission, China Times reported, citing an unnamed person close to China Railway Corp.

Government-backed China Railway Group Ltd. (CRG) (00390.HK, 601390.CN) has offered to invest in Britain’s railways by financing and building links to a new Birmingham station on the high-speed HS2 network, Financial Times reported Wednesday.

IPO hopefuls draw 124 bln yuan online subscriptions

Online subscriptions for the public listing of Guangdong Xinbao Electrical Appliances Holdings Co. Ltd. and Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd. have tied up an estimated 124.5 billion (US$20.56 billion), China Securities Journal reported Friday, citing regulatory filings. The figure compares with 100 billion yuan expected by industry analysts. Meanwhile, Jiangsu Aosaikang Pharmaceutical Co. Ltd. has suspended its IPO plan. No date was given for a relaunch, the report said.

Government set to launch price-based coal resource tax

China is expected to launch a price-based coal resource tax this year, China Securities Journal reported Friday, citing an unnamed source. The new levy will increase coal producers’ operating costs which could prompt the government to offer some tax relief. Coal prices are expected to fall in the coming months amid rising inventory linked to the upcoming Spring Festival holiday and panic selling by traders, the report said.

– Contact HKEJ at [email protected]

JP/CG

 

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