China Railway transformed into corporate structure

Source:Global Times Published: 2019/6/18 14:56:46



China Railway Corp was restructured to become the China State Railway Group Co on Tuesday as part of the government's efforts to introduce a corporate system into state-owned enterprises (SOEs), according to the company's statement on Tuesday. 

According to the statement, the China State Railway Group Co was reconstructed with the approval of the State Council, China's cabinet, and is registered with 1,739.5 billion yuan ($251 billion). The rights, debts, brands, qualifications and intellectual property rights of the previous China Railway will be assumed by the new company. 

The new China State Railway Group will not have a board of shareholders, and the duties of the capital distributors will be performed by the Ministry of Finance, the statement said. The Board of Directors and the management team that have been established to execute these duties will do so under the legal entity system. 

The restructuring of China Railway is among many other efforts to reform and modernize large SOEs. Since 2017, China's railway industry has undergone reforms to introduce the corporate and shareholder system. The reforms are expected to improve the efficiency, and market competitiveness of railway companies, the company statement said. 



Posted in: COMPANIES

blog comments powered by Disqus