Beijing-Shanghai High-Speed Railway Co is planning to raise Rmb30bn-50bn through an initial public offering this year, a source with the Ministry of Railways told China Daily.

The plan has yet to be approved by the State Council as the line is still under construction and the railway operator does not have the regulatory requirement of a three-year profit record, said the source.

China Railway Investment Corp (CRIC), owned by the Ministry of Railways, is the largest shareholder in the company, which was set up in 2007. CRIC holds a 56.2 per cent stake in the project and it said it intends to sell a 4.5 per cent stake to raise about Rmb6bn for other construction projects.

Ping An Asset Management and the National Council for the Social Security Fund are the second and third largest shareholders in the company.

Railway projects in China are largely financed through national funds and railway construction bonds issued by the Ministry of Railways. However, the ministry is now exploring different ways to raise capital.