A Ministry of Railways official has said that China has sufficient money to finance the high-speed railway construction programme, reported Xinhua. Yu Bangli, chief economist at the ministry, said the debt-to-asset ratio of high-speed railway projects stood at 52 per cent in 2009, much lower than the level in other countries.

Wang Zhiguo, vice minister of the Ministry of Railways, said private capital is encouraged to invest in the construction of high-speed railways. “Capital from local investment, strategic investors as well as listed companies, accounts for about 30 per cent of the total capital input on railway construction,” he said.

Financial instruments such as securities and bonds are also important fund sources.

China currently has about 3,300km of operational high-speed railways, and it plans to expand the network to 13,000km by 2012, according to the ministry.