H share Guangshen Railway has indicated it will take stakes in two mainland transport-related firms, before their A-share listings.
It will become a strategic investor in speed parcel and luggage delivery rail firm, Sino Rail Express China, and an electric locomotive maker, Zhuzhou Electric Locomotives Works. The pair are being restructured into shareholder firms for listing.
Guangshen will become the second-largest shareholder in Zhuzhou Electric Locomotives, but had yet to work out the size of the share and the amount to invest. At the same time it will pay 13.6 million yuan (about HK$12.75 million) for 2.5 per cent of Sino Rail Express.
Chairman Zhang Zhengqing said the investments would help the company expand its income base from railway-related businesses.
The H share operates the rail link between Guangzhou and Shenzhen and participates in through-train services between Guangzhou and Hong Kong.
The company is also seeking to acquire one or two transportation companies as well as to inject its telecommunications asset into China Railway Communication in return for a stake in the company.
