Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

CSR Falls in Hong Kong After Rail Review Report

Nov. 8 (Bloomberg) -- CSR Corp., a Beijing-based railcar maker, fell the most in more than 14 months in Hong Kong trading after the Financial Times reported that China was reviewing plans to expand its high-speed rail network.

The shares dropped 6.6 percent, the biggest decline since Aug. 17, 2009, to HK$9.02 at the 4 p.m. close in Hong Kong.

China’s Ministry of Railways is reviewing high-speed rail proposals after a report by the Chinese Academy of Sciences to the State Council raised questions about their practicality and affordability, the Financial Times said, citing unidentified people familiar with the matter. China’s Premier Wen Jiabao has seen the report and asked for further talks on the project, according to the report.

The rail ministry declined to comment by phone today.

China, the world’s fastest-growing major economy, said in July it needed about 800 billion yuan ($120 billion) to complete high-speed rail projects as the country invests in train services to pare pollution and travel times.

The country plans to increase high-speed railroads to 13,000 kilometers (8,000 miles) by the end of 2012 and to 18,000 kilometers by 2020 from the current 3,676 kilometers, according to Citigroup Inc. analyst Zhen Ni.

A 1,318-kilometer rapid railroad linking Beijing and Shanghai, due to open in 2012, will cut journey times to about four hours from 10 hours, according to the rail ministry.

To contact Bloomberg News staff for this story: Tian Ying in Beijing at ytian@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.