New | China Railway sees pickup in projects in second half
New contracts fall 19.4pc on weak economy and slow start to public-private partnership projects
China Railway Group says it expects new contracts to pick up in the second half as the government is determined to boost infrastructure investments to tackle the economic slowdown.
The state-owned company that operates railways, highways and municipal infrastructure reported new contracts in the first half fell 19.4 per cent to 331.47 billion yuan as fewer new projects opened for bidding amid a weaker economy and ongoing investment and financial reforms.
"Infrastructure investment is still the main force driving China's economy," said China Railway chairman Li Changjin. "The State Council is pushing local governments to accelerate projects construction. Domestic railway investment should hit the target of 580 billion yuan this year."
In the first half, the country's investment in railways amounted to 265 billion yuan, equal to 46 per cent of the full-year target.
"We will see a better second half in terms of new contracts. Our new contracts for the entire year will not be less than last year," Li said.
A fifth of the value of new contracts in general contributes to the current year's revenue.