(Yicai Global) Aug. 7 -- China's state-owned railway giant China Railway Corp.'s tangible assets will rise 9 percent more than expected this year on a slightly growing demand for infrastructure upgrade.

China Railway Corp. will bolster the value of fixed assets to more than CNY800 billion (USD117.7 billion) by year-end, an employee at the Beijing-based locomotive firm told local news outlet China Business Journal. The higher estimate results from a boost in the volume of passengers and cargo, which has spurred larger infrastructure undertakings. These assets were CNY794 billion last year.

A number of new infrastructure projects will be started in the next months, which will bring investment in railway construction to a new level. Last three years show that up to 70 percent of projects are usually finished during the second half of a year, which provides growth prospects for the next months.

From January to July, the railway firm's fixed assets were worth CNY375 billion, which was 3.5 percent higher than last year. Some 96 percent of the assets are national railways, according to the original estimate of CNY732 billion for the whole year. The rolling stock company will spend CNY120 billion, which is half more than expected, to purchase and maintain its vehicles during the year.

Editor: Emmi Laine