Beijing-based business publisher Caixin reported on May 5 that the auditor's findings were posted on the website of China Central Deposit and Clearing Company on April 29.

Despite the increase in debt, CRC's debt ratio fell from 66% to 65.2% because the value of its assets increased 12.2% to Yuan 6.4 trillion.

According to the audit, CRC's first-quarter losses increased 35.1% to Yuan 8.7bn, primarily due to the continuing slump in freight traffic.

In January CRC confirmed it plans to invest Yuan 800bn this year but the report shows only 9% of this amount was spent in the first quarter.