(Yicai Global) July 17 -- Beijing-Shanghai High Speed Railway, the firm behind the transport link connecting China's largest city and its capital, reportedly preparing to go public after years of speculation surrounding a potential lting.> /n/n/n/n/n
The unit's parent China Railway and investors Ping An Asset Management and the National Social Security Fund have reached a consensus on the flotation, financial news outlet Caixin cited sources as saying. The Shanghai-Beijing line opened in 2011 and began turning a profit in 2014. It pocketed nearly CNY10 billion (USD1.5 billion) two years later.
Ping An and the NSSF have been pushing for the firm to go public in recent years, but China Railway held out as it believed the company to have sufficient cash flow. It appears to have opened up to the idea as the central government looks to deleverage and conduct institutional reforms at railway firms to cut back on rk.
China's top economic planner the National Development and Reform Commsion, the Mintry of Transport and other policy makers unveiled a five-year development plan for the rail industry in November, pledging to bring in more private investors, optimize corporate structures and make the sector more market oriented.
Editor: James Boynton