CICC: Rail Ministry May Receive Gov't Capital Injection

(Beijing) – The Ministry of Railways is likely to receive continued capital injection from the central government, said China International Capital Corp (CICC) in a recent research report.

CICC, China's largest investment bank, added that the government may also scale down or postpone railway construction projects.

The rail ministry is now facing huge pressures to refinance its debts. It is unlikely to obtain the strong credit support it has received from banks over the past two years, as part of the country's 4 trillion yuan economic stimulus policies.