Foreign Media: Chinas Railway Investment will reach the highest level in history in 2019

 Foreign Media: Chinas Railway Investment will reach the highest level in history in 2019

Reference News Network reported on January 22 that in 2019, China Railway Corporation plans to put into operation 6,800 kilometers of new lines, including 3,200 kilometers of high-speed rail, which means that Chinas railway investment in 2019 will reach the highest level in history.

According to Japan Economic News on January 21, China has decided to raise its railway construction investment in 2019 to the highest level in history of 850 billion yuan. In addition to the automotive sector, which is expected to account for 10% of GDP, China may also introduce consumer stimulus policies, such as subsidies for household appliances, in order to develop the economy by expanding investment and stimulating consumption.

According to the annual construction plan recently issued by China Railway Corporation, new construction mileage is expected to reach 6,800 kilometers in 2019, an increase of 45% over the previous year. The starting mileage of high-speed railway is controlled at 3200 kilometers, reducing by 20%. However, due to the upcoming construction of Chongqing-Kunming section through mountainous areas and multiple tunnels, the total investment is expected to increase substantially.

In addition, the new lines include the railway linking Hunan, Jiangxi and Sichuan and Chongqing, as well as the line linking Xiongan New Area and Shangqiu, Henan Province. Railway links between Sichuan Province and Tibet Autonomous Region are also likely to be built this year.

Reported that consumer stimulus policy is also under study. Ning Jizhao, deputy director of the NDRC, said in an interview with the media that he was considering introducing a subsidy policy for automobile and household appliances consumption.

From 2009 to 2017, China implemented tax cuts for small cars and subsidies for car purchases in rural areas. Sales of new cars fell for the first time in 28 years in 2018 as subsidies were no longer granted. Ningji Zhes statement also reflects the importance of promoting car sales in rural areas. Some securities analysts believe that the new subsidy may reach 30 billion yuan.

In the field of household appliances, the old-for-new subsidy and rural sales subsidy, similar to those implemented from 2009 to 2013, are also being studied. The investment is expected to be around 20 billion yuan.

In addition, Reuters has previously reported that China Railway Corporation (CRC) released its latest task for 2019 on January 2 to ensure the commissioning of 6,800 kilometers of new lines, including 3,200 kilometers of high-speed rail.

China Railway, the public number of China Railway, issued the contents of the Railway General Working Conference on January 2. In 2018, the fixed assets investment of the National Railways was 802.8 billion yuan, 26 new projects were started, with an additional investment scale of 338.2 billion yuan, and 4683 kilometers of new lines were put into operation, including 4100 kilometers of high-speed railways.

Reported that this means that this years new production lines mission target is 45% higher than last years new production line.

The meeting of the Railway Federation indicated that this year, the reform of the railway management system and operation mechanism should be further deepened, and the development of Railway Assets should be strengthened to improve the quality and efficiency of capital operation.

By the end of 2018, the operating mileage of national railways will reach more than 131,000 kilometers, including 29,000 kilometers of high-speed rail.

Source: Responsible Editor of Reference News Network: Dai Lili_NN4994