China approves $7.87 billion in railway projects to jumpstart economy

Source:Reuters Published: 2012-11-28 15:20:04

China has approved construction of two city subway projects worth 49 billion yuan ($7.87 billion), adding to the list of recent railway project approvals aimed at boosting growth in the world's second biggest economy.

The National Development and Reform Commission (NDRC) also approved a feasibility study on an inter-city rail line between Fuzhou and Pingtan, an island off the coast of Fujian, worth a further 26 billion yuan, Shanghai Securities News reported Tuesday.

The projects appear to be aimed at shoring up growth in China's economy, which has slowed for seven consecutive quarters, most recently posting 7.4 percent annual growth for the third quarter.

More recent data, however, has shown signs of a recovery, with fixed-asset investment, factory output, and retail sales all beating expectations in October.

The Shanghai Securities News, citing an announcement from the NDRC, reported the agency had approved construction of a second subway line in Fuzhou, capital of East China's prosperous Fujian Province.

The commission also approved construction of the first two subway lines in Urumqi, capital of Northwest China's Xinjiang Uyghur Autonomous Region, the paper reported.

The Fuzhou project, which will take four years to complete, is worth 18 billion yuan, while the Urumqi project will total 31 billion yuan and is due for completion in 2019.

The latest project approvals come on the back of a slate of rail and other projects approved in recent months. In early September, the NDRC approved 25 rail projects totaling $110 billion.

Reuters estimated that a flurry of new project approvals announced in early September totaled $157 billion.

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