Chinese government approves establishment of China Railway Corp.

The Chinese government has approved the establishment of China Railway Corporation, which will perform the commercial operations of the defunct Ministry of Railways (MOR). The new corporation will have a registered capital of RMB 1.036 billion ($166.6 million) and will be a fully state-owned enterprise administered by the central government and supervised by the Ministry of Transport and the future State Railways Administration (SRA). The Ministry of Railways’ assets, liabilities and staff will be passed on to China Railway Corporation. The move to dismantle the Ministry of Railways is aimed at tackling corruption within the ministry as well as the enormous debt load which it has accumulated.