Urban Rail Increasingly Cash-Strapped

A rundown of the news making headlines in and around China:

Subway system strain: China’s urban rail sector is coming under increasing financial pressure, according to new research from an industry association. Major problems include high levels of debt and insufficient revenue. Ticket sales nationwide only account for about one-third of the sector’s costs, with over 90% of urban rail systems reliant on government subsidies to stay afloat. Only 50% of underground rail systems meet passenger density requirements set by the central government. Other issues include spiraling operating costs, the high price of construction, and a looming wave of equipment replacement. As of last year, 54 cities had railway systems, totaling 325 lines, over 6,300 stations and nearly 11,000 kilometers (6,835 miles) of track.