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August 07, 2009

Bank of China plans to invest in HS line

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BOC Investment, the investment subsidiary of Bank of China, is planning to take an 8% stake worth about Yuan 10 billion ($US 1.5 billion) in Beijing-Shanghai Railway Corporation (BSRC), reports the state-owned newspaper, China Daily. BSRC owns and will operate the 1318km high-speed line being built between Beijing and Shanghai.

The stake will be purchased from China Railway Investment Corporation, the investment arm of the Ministry of Railways, which is the largest shareholder in BSRC with 56% of the shares.
"The Ministry of Railway has to find capital to fund the massive railway building boom currently underway in the country; this may be a major reason behind its decision to sell the stake to Bank of China," Mr Li Chao, an analyst with China Jianyin Investment Securities, told China Daily.

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