China's railways on the fast track to growth

Overview

Railways have emerged as a major investment theme in China, with government plans for state expenditure on the sector amounting to Rmb1.25 trillion (US$183 billion) in 2006-10. We believe this figure represents only the minimum level of government investment needed to remedy the network deficiencies that are holding back the growth China needs. It does not include further increases we believe the government will unveil as part of its forthcoming fiscal stimulus package, which we expect...