High speed rail financing, only to boost railway construction

On November 14, Beijing Shanghai High Speed Railway Co., Ltd., controlled by China Railway Group, applied for initial public offering of shares and listed on the main board of Shanghai Stock Exchange, which was approved by the issuance review committee meeting of China Securities Regulatory Commission. "The first share of China's high-speed rail" is about to land on the Shanghai Stock Exchange, marking an important progress in the reform of railway joint-stock system. (CCTV news on November 15)

"the world's high-speed railway looks at China, and China's high-speed railway looks at Beijing and Shanghai". The successful listing and issuance of shares of Beijing Shanghai high-speed railway can be said to have launched the "first shot" for the railway to open a new financing mode. But many netizens can't help shouting after hearing the IPO of the Big Mac: "Beijing Shanghai high-speed rail can make money, this wave is not to cut leeks?" In fact, we have to think about it from a big perspective. As we all know, the main source of railway construction funds is bank loans. As of the first quarter of this year, the total debt of railway is still more than 500 million yuan. According to the medium and long term railway network development plan, by 2025, the scale of railway network will reach about 175000 km, including 38000 km of high-speed railway. We can see that it will be the peak of railway construction for a long time in the future. So how can we build a new railway without money

the author believes that as an important development engine and infrastructure, railway construction needs new financing to boost railway construction, not only for the people of Beijing and Shanghai, but also for the people of the whole country. Therefore, it is urgent for railway enterprises to accelerate asset securitization and broaden financing channels. Taking the issue of shares of Beijing Shanghai high speed railway as an example, the funds raised can not only invest in new railway projects, but also drive the securitization of other railway assets, which can obviously accelerate the pace of railway construction. Although the Beijing Shanghai high speed railway has been profitable for four years since 2015, it does not mean that it is to attract money after listing. After listing, the Beijing Shanghai high speed railway must also have good earnings in the future, in order to keep the job of "the first share of China's high speed railway". Therefore, how to reduce costs and improve the operation rate of the Beijing Shanghai high speed railway requires reform of the Beijing Shanghai railway. We have reason to believe that the securitization of the Beijing Shanghai high speed railway will help to promote better service measures. We also have reason to believe that railway enterprises will create experience upgrading through new means such as technological innovation, so as to win passenger satisfaction. There is more reason to believe that the securitization of railway will be gradual. The Beijing Shanghai high speed railway is just the tip of the iceberg of China Railway Corporation. In the future, China Railway Corporation's high-quality assets "Guangzhou Shenzhen railway", "China Railway special goods" and "Tielong logistics" will also be followed by financing. And the development of railway will be more prosperous day by day! (Chen Na)