(Chinadaily.com.cn)
Updated: 2007-07-31 15:49

China Railway Engineering Corporation (CREC) made a big step in its listing plan by hitting the domestic A share market, a source from CREC management said.

A market source said that the central government has okayed CREC's dual listing to raise US$1.5 billion in the third quarter of this year. However, a senior official from CREC only confirmed the approval of its A share listing without mentioning the H shares.

The official failed to elaborate on its financing plan and simply said the financing process will be finished late this year.

As early as in April, China Railway Erju Co Ltd, a listed arm of CREC, disclosed that CREC planned to go public with all its affiliates except China Railway Erju, which would continue to run under its parent company.

Ranking the ninth among central enterprises by revenue, CREC has seen an average annual rise of 10 billion yuan (US$1.32 billion) in revenue and new contracts respectively since 1997 to reach 126.4 billion yuan and 205.5 billion yuan respectively in 2005 alone.

According to Long-term Railway Construction Plan approved by the State Council in 2004, China will spend over 2 trillion yuan in railway construction and extend the rail network to 100,000 kilometers by 2020. In the current 11th Five Year Plan period (2006-2010), 1.25 trillion yuan will be invested in the area.

Market sources said another railway giant, China Railway Construction Corporation, also plans dual listing in the domestic and Hong Kong stock markets next year. China Northern Locomotive & Rolling Stock Industry (Group) Corporation and China South Locomotive & Rolling Stock Industry (Group) Corporation also intend to list soon.