Wednesday, September 5, 2012
China to increase rail stimulus investment in face of slowing economy
China's Ministry of Railways will reportedly increase it's previously announced investment target another $4 billion for railway construction this year to $78 billion as a form of stimulus amid what the government there says is a slowing economy.
"The investment on new railways will be at least 67 billion yuan a month from September till the end of this year," said China Railway Group's President Bai Zhongren at a news conference in Hong Kong on Tuesday.
The latest rail stimulus increase marks the third time this year China's government has reportedly done so, with the original amount intended to be $64 billion.
"The Ministry of Railways will hold a mobilization meeting soon, which is very rare and it demonstrates its determination on boosting the railway construction," said Bai.
China's Purchase Managers Index dropped to an unexpected 49.2 in August from 50.1 in July, its lowest point in nine months.
"I can tell you for sure that the second half of this year will be better than the first-half (for China Railway Group)," Bai said.
For the full China Daily story: chinadaily.com.cn
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