China raises 2014 railway spending target to 800bil yuan

China is expected to spend US$16bil on railway infrastructure in 2014, bringing 7,000km of new line into operations - Reuters Photo.

SHANGHAI: China will raise its spending targets on railway infrastructure to 800 billion yuan (US$16bil) in 2014, two sources with direct knowledge told Reuters, in what would be the third such increase this year as Beijing gingerly returns to stimulus spending in the face of economic disappointments.

China Railway Corporation, the state-controlled commercial entity spun off from the Ministry of Railways in 2013, said during a conference call on Friday that it has raised its annual spending target to 800 billion yuan for the year, according to the sources.