Bank of China to Invest in Rail Company

13 May 2010 (Last Updated May 13th, 2010 18:30)

The Bank of China is planning to invest CNY7.5bn ($1.1bn) to acquire a 14.5% stake in a Chinese railway company. Construction of a rail line between the northern province of Shanxi and the eastern province of Shandong is expected to be carried out by the yet-to-be-formed company, which

The Bank of China is planning to invest CNY7.5bn ($1.1bn) to acquire a 14.5% stake in a Chinese railway company.

Construction of a rail line between the northern province of Shanxi and the eastern province of Shandong is expected to be carried out by the yet-to-be-formed company, which will have a registered capital of CNY51.9bn ($7.6bn).

The Shanxi-Shandong railway is estimated to cost CNY99.8bn ($14.6bn), according to Reuters.

Completion of the rail link is expected in 2014.