Why should Beijing Shanghai high speed rail go public?

On October 25, the China Securities Regulatory Commission disclosed on its official website that the Beijing Shanghai high speed railway would soon be listed on A-share market, which should be paid attention to by the whole people. The data shows that there are 67 employees of Beijing Shanghai high speed railway, making 35 million yuan per day and 140 million yuan per capita net profit in 9 months. As a proper Big Mac, the news of listing has attracted the attention of numerous netizens. As the most profitable railway in China, why should Beijing Shanghai high speed railway go public

from the perspective of the reform process of China Railway, China National Railway Group Co., Ltd. was originally under the Ministry of railway of China, and began to carry out the reform in 2013. The former Ministry of railway was divided into two parts, the government and the enterprise were separated into the railway head office and the state railway administration. The enterprise fully implemented independent profit and loss. Among them, Guangzhou Shenzhen railway, Daqin Railway, etc. in a share will provide valuable experience for China Railway Group to carry out the mixed ownership reform. However, Beijing Shanghai high-speed railway, as a profitable giant in the high-speed railway, is a historical choice as well as an inevitable choice for marketization.

from the perspective of financing channels, at present, the funds for railway construction mainly come from the national and local governments, among which China Unicom is the representative enterprise, and also participates in the railway construction, and has started to receive dividends since last year. But at the same time, the railway bears the public welfare function that other enterprises do not have. Many of the "slow travel" also serves the people in remote mountainous areas. Because the people need it, it cannot be "eliminated". Therefore, it can only concentrate resources such as "Beijing Shanghai high speed railway" to seek development, so to get through the bottleneck of railway transportation, it needs to invest more funds to get through the last kilometer of door-to-door service of railway freight.

today, China's railway is the largest in scale and the most advanced in technology. However, the rapid development period has also accumulated many problems for the railway, and high debt ratio has been a hot topic. The plate of railway is too big. Local governments can't get enough money from the state alone. The entry of private funds can solve the problem of capital shortage, promote the full coverage of the railway network, and promote China's high-speed rail to go out.

in the eastern coastal areas of China, the high concentration of population and the density of population determine the great prospect of the Beijing Shanghai high-speed rail market. The daily profitability of the Beijing Shanghai high-speed rail will attract a large number of funds to enter the market. This is an absolute order for retail investors who love the railway and want to support the railway construction to buy one or two hands to support the railway. The good news of people's excitement is another reason why the Beijing Shanghai high speed railway will go public. (article / Tang Yuanfeng)