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Reorganization Of Local Railway Bureaus Draws Near; NDRC Eases Train Ticket Fare Rise Fear

|Includes:China Railway Group Ltd.H (CRWOF)

 

 
Prepared by ChinaScope Financial | Source: Sohu
  • Recent Reports suggest that the eighteen local railway bureaus will be consolidated into seven regional railway group corporations following the establishment of China Railway Corporation.
  • Specifically, Shenyang Railway Administration and Harbin Railway Administration will be merged into the proposed Northeast Railway Group Corporation, with its headquarter located in Shenyang. Railway administrations of Urumqi, Lanzhou and Xi'an will be consolidated into the proposed Northwest Railway Group Corporation headquartered in Xi'an, and railway administrations of Zhengzhou, Wuhan, Nanchang and Guangzhou Railway Group Changsha Branch will be integrated into the proposed Central China Railway Group Corporation headquartered in Wuhan. The proposed North China Railway Group Corporation will accommodate the existing railway administrations of Hohhot, Taiyuan, Beijing, and Daqin Railway Co., Ltd. The proposed South China Railway Group Corporation will be formed by taking in Liuzhou Railway Administration and Guangzhou Railway Group. The new East China Railway Group Corporation will be established by merger of Jinan Railway Administration and Shanghai Railway Administration, their counterparts in Chengdu and Kunming will be consolidated into future Southwest Railway Group Corporation. Headquarters of the proposed North China Railway Group Corporation, South China Railway Group Corporation, East China Railway Group Corporation, and Southwest Railway Group Corporation are expected to be set up in Beijing, Guangzhou, Shanghai, and Chongqing respectively.
  • Regarding market concerns about potential train ticket fare rise after the introduction of a more market-oriented pricing system, Cao Changqing, Director General of the Price Department of the National Development and Reform Commission, stated today that a government-guided pricing system will remain after the organization and China's train ticket fare will only go downwards if needed.
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Stocks: CRWOF