Solving the Railway Financing Dilemma

As excessive production capacity has been seen in many industries, the railway sector has become the major target for investment and is expected to support more steady growth. A July 24 State Council executive meeting even tackled the issue of railway investment reform.

Yet the China Railway Corp. (CRC) was saddled with debt of 2.84 trillion yuan by March, unprofitable new railroads and costly projects. It must raise enormous funds to cover the operational deficits, service existing debt and pay for new projects. Where will the money come from?