China tightens remedy for urban rail investments in bid to manage debt
BEIJING (Reuters) – China’s cabinet on Friday announced new rules to strengthen management of urban railway projects as policymakers look to control high numbers of debt within the city level.
In a document released Friday, nys Council revealed that new projects involving companies with excessive debt ratios are going to be suspended. China is additionally setting new baseline requirements on ridership levels as well as size and savings for cities signing up to build new urban railways.
Last year urban rail projects in a number of cities were halted as a result of concerns the projects cant be found financially sustainable.