We believe that railway industry differs from other industries in capital injection and overall listing of railway administrations. It is not just a matter of management on capital market, but closely related to the important changes of China railway structure.
Form reorganization experience of foreign railways, transport density and transport volume of railway transport in China, and organization structure and clearance system of Chinese railways, we suggest that unifying the network with the transportation and integrating trunk lines are the best ways to reform and reorganize Chinese railway companies. To achieve such integration, it shall reorganize current 18 railway companies. No matter by what means, it is necessary to adjust liquidation process and transport tariff system.
Railway Transportation Density by Country
Passenger and Cargo Transportation Density by Country
The reform of China Railway will bring the huge opportunity for the capital market.