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280b yuan to build basic services

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State-owned enterprises and local governments on the mainland plan to spend more than 280 billion yuan (HK$344.11 billion) on infrastructure projects in the next four years.

'The government is clearly looking to publicly funded infrastructure to support growth this year,' said Andrew Batson, research director of Dragonomics, a mainland-based economic research house.

'It has bigger room for infrastructure spending. Infrastructure growth in utilities, transport, water and the environment was zero or negative in the second half of last year.'

From 2012 to 2015, Shanxi province will make transport-related fixed-asset investments totalling 196.7 billion yuan, including spending 150 billion yuan on building expressways, Shanxi Road and Bridge Construction says in its bond prospectus.

The road construction firm, wholly owned by Shanxi's transport bureau, is to issue 800 million yuan of one-year bonds to be used as working capital and to repay debt.

China Railway Materials plans to spend 23 billion yuan in the five years to 2015, it says in its bond prospectus.

The rail logistics firm aims to issue 2 billion yuan of six-month bonds to repay debt and replenish working capital. Projects to be financed by the 23 billion yuan include rail products, steel trading facilities, train stations and acquisitions of overseas mines.

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