BEIJING (AFP) - A Chinese train manufacturer announced a deal on Monday worth hundreds of millions of dollars to provide rolling stock to the US city of Boston for its subway system, state media reported.

The deal announced by China CNR Corporation to sell 284 subway trains is worth 4.12 billion yuan (S$950 million), the official Xinhua news agency said.

The sale marks the first time China has entered the US rail transit market, according to Xinhua.

Under the deal, the Chinese company will sell the trains to the Massachusetts state transportation regulator for use on Boston's Red and Orange subway lines, the report said.

The trains are built to travel at a speed of 102 kilometres per hour and as far as 129,000 kilometres a year for a life span of at least 30 years on regular maintenance, the report said.

According to Xinhua, China CNR is aiming to enter markets in other US cities including New York and Washington and will establish a research and development base in the country.