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Railways seeking overseas investment
By Cao Desheng (China Daily)
Updated: 2005-09-21 05:52
The central government's rail construction fund is the main source of capital for expanding the network, accounting for more than 90 per cent of the total. The rest comes from local governments and loans from the China Development Bank.
One of the main reasons for the lukewarm response from private investors is profit guarantees, said Wang Qingyun, director of the transport department of the National Development and Reform Commission.
Wang made the remarks while addressing the two-day China Railway Investment and Financing Reform Forum, which opened in Beijing yesterday.
"Favourable policies must be worked out to boost investor confidence," Wang said.
Meanwhile, a fair and transparent ticketing system must be set up to allow investors to decide prices, he added. The existing fare system does not allow for price fluctuations in line with market changes, which raises investor concerns about adequate returns.
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