SHARES of China Railway Group Ltd rose yesterday on news it secured contracts worth 11.5 billion yuan (US$1.68 billion) to construct a passenger rail line between Shijiazhuang and Wuhan.

The contracts value is equal to 6.38 percent of its revenue in 2007 under domestic accounting standards, Asia's biggest construction company said in a statement to the Shanghai Stock Exchange yesterday.

Under the contracts, two subsidiaries of the group will build parts of the line between Shijiazhuang, capital of Hebei Province, and Wuhan, capital of Hubei Province, the statement said.

The firm's share price gained 0.36 percent to 5.61 yuan while the Shanghai Composite Index shed 0.78 percent to 1,958.53 points.

The builder said in a separate statement that it has approval from shareholders to issue up to 15 billion yuan of bonds in China with maturities of no more than 15 years. The funds raised will satisfy the firm's capital demand over the middle and long-term, help its debt restructuring and repay loans and replenish liquidity, the statement said.

The builder said last month that its overseas orders will reach 30 billion yuan in the second half, more than doubling the value in the first half. The Beijing-based company will invest US$2.64 billion to build a transport system for a copper-and cobalt-mining project in the Democratic Republic of Congo.