China Boosts Rail Spending for Third Time to Revive Growth

[marmar]

(Bloomberg) China boosted plans for spending on railway construction this year to 496 billion yuan ($78 billion), according to China Railway Group Ltd. (601390), as the government seeks to revive flagging economic growth.

Spending on new railways will total at least 67 billion yuan a month until the end of the year, Bai Zhongren, president of state-controlled China Railway Group, told reporters in Hong Kong today. The ministry has funding for the new plan, which is an increase from 470 billion yuan, he said.

“This all shows the government’s determination to boost rail development,” Bai said. “The government and leaders have stressed many times that the nation should have a scientific and sustainable development of railways.”

The new figure, 7.6 percent more than last year’s 461 billion yuan spending, is at least the third increase since the start of July when Premier Wen Jiabao said promoting investment growth is key to stabilizing economic expansion that has fallen to the slowest pace in three years. It also marks a renewed focus on building railways after a fatal crash last year prompted safety concerns and a construction slowdown. ..................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-09-04/china-boosts-rail-spending-for-third-time-to-help-revive-growth.html