China Railway Mulls Bank, China Economic Weekly ReportsClement Tan
China Railway Corp. is exploring plans to start a bank, the China Economic Weekly reported on its website.
Wang Mengshu, a researcher at the Chinese Academy of Engineering, said the rail operator’s investment fund asked for his opinion on two options for starting a bank, according to the weekly, owned by the state controlled People’s Daily newspaper.
China Railway is considering whether to start a lender similar to the Export-Import Bank of China by itself, or to work with existing banks, the weekly reported, citing Wang.
China’s cabinet said April 2 it will deepen railway investment and financing system reform. China’s top economic planning agency on July 8 unveiled a railway development fund seeking private investment.
The national railway operator is the largest bond issuer in China, where the government is using infrastructure investment to stimulate economic growth.
Calls to China Railway seeking comment were not answered.