Railway Operator to Stay on Reorganization Track

China’s railway operator will continue to push forward a reorganization plan that could include an eventual initial public offering, the party secretary of China Railway Corp. (CRC) said.
“The railway sector will step up the pace of market-oriented reforms, which include listing on stock exchanges, bond-to-stock programs and inviting more private capital to enter the sector,” said Lu Dongfu — who is also chief manager of CRC — in an exclusive interview with Caixin.
As part of nationwide state-owned enterprise reforms, Beijing spun off the operations arm of the now-defunct Ministry of Railways to form CRC in 2013.
![]() |
Travelers wait for their high-speed train in Hangzhou Railway Station in Hangzhou, Zhejiang province on Feb. 2. Photo: IC |
China’s railway sector has developed rapidly over the last few years and now the country boasts the world’s largest rail network. As at the end of 2017, China had 127,000 kilometers (78,900 miles) of tracks, including 25,000 kilometers of high-speed rail lines.
However, this years-long investment frenzy means that CRC has taken on a lot of debt. Reorganization plans, such as listing in the public market, are expected to help the company alleviate the issue of its huge debts, which stood at 4.72 trillion yuan ($749 billion) as of the first quarter of 2017.
In the interview, Lu also said CRC will continue to roll out more projects “that are attractive to private investors.”
The rail operator last year signed a deal with a group led by private equity giant Fosun Group to launch China’s first privately controlled railway line.
The 269-kilometer rail line, which would link Zhejiang province capital Hangzhou with the provincial city of Shaoxing, has been hailed as a major milestone in the operator’s program to lure more private funding into the sector. CRC has said it will allow the rail line’s operator to set its own ticket prices.
Contact reporter Mo Yelin (yelinmo@caixin.com)
-
06:34 PM
-
06:08 PM
-
05:03 PM
-
03:56 PM
-
03:11 PM
-
12:55 PM
-
Jan 15 05:56 PM
-
Jan 15 05:49 PM
-
Jan 15 05:06 PM
-
Jan 15 02:10 PM
-
Jan 15 01:25 PM
-
Jan 14 06:58 PM
-
Jan 14 06:54 PM
-
Jan 14 04:42 PM
-
Jan 14 02:13 PM
- 1Chinese SOEs May Speed Up Delisting U.S. Shares Amid Trump’s Crackdown, Sources Say
- 2Getting out of Liangshan-Part One
- 3China Removes Limits on Credit Card Interest Rates
- 4Cover Story: Why China Faces Handicaps in Antitrust War With Tech Titans
- 5In Depth: China Applies Closer Scrutiny to Sprawling Tech Acquisitions
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas