Investment in China's railway infrastructure can be doubled by contributing to the efforts to reverse the slowdown in the world's second-largest economy in the next half of the year.
The entire year's spending will be 6 billion yuan ($448.3 billion), according to a statement on the website of the Anhui branch of the National Development and Reform Commission on July 70.3. The document shows a nine percent increase in spending from the previous plan of 411.3 billion yuan. Spending in the first half of the year was 148.7 billion yuan.
While China's fixed asset investments are already moving, a leap in investment in railway construction will be a measure similar to spending on railways and bridges, which are part of the incentive efforts during the global crisis. The decline in foreign direct investment, which the government announced today, shows that Europe's debt problem and austerity measures affect Asia's largest economy.
Former IMF employee and now Hong Kong-based Nomura Holdings Inc. economist Zhang Zhiwei said that China's revival could be "stronger than the market expected". “More positive signs confirming that China's pro-growth policies are effective will take place in the coming months,” said Zhang.
China Railway Group Ltd., the two biggest railway makers in China. and China Railway Construction Corp. leaps on the Hong Kong stock exchange. Although the information in the Anhui document was based on the railway ministry, 7 phone calls from Bloomberg to find out about the issue remained unanswered.
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